The RBA won't be proven wrong on its conservative consumer thesis: it is just giving us a choice--decide for yourselves (unlikely) or we'll make the decision for you (likely). Ross Gittins today is the third or fourth RBA voice-piece to recycle something I've been saying here for ages:
"In recent times, households have been saving more of their income and doing so of their own volition. As a group, Australian households are heavily indebted - mainly on their homes - and the main way they've saved is by paying down their debts.
So it's a sensible thing to do and the longer we choose to keep doing it the less the Reserve will see a need to beat some parsimony into us with the stick of high interest rates."
