The retail figures released on Tuesday show the interest rate hikes “haven’t bitten” as hard as the Reserve Bank expected, George Washington University economics expert Steven Hamilton.
He noted that the Reserve Bank started lifting interest rates “too late” and only started with a very small rate increase.
“They are probably looking at these and just having a rethink about just how high that terminal interest rate gets to, which is the key number,” Mr Hamilton told Sky News Australia.
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