Australian households’ savings war chest bulges

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Yesterday’s national accounts release from the Australian Bureau of Statistics (ABS) revealed that households continue to accumulate an immense savings war chest on the back of record government stimulus.

While the household savings rate fell to 11.6% from 12.2% in the December quarter of 2020, it remained at elevated levels, as illustrated in the next chart.

Household savings rate

Household saving rate remains elevated.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.