Other households have very limited savings and few financial buffers. One of the other indicators we are monitoring closely is mortgage arrears. These remain very low, although they have increased a little of late. Banks report that their customers are managing to make their mortgage payments, although many have had to cut back on other spending. So, it is a complicated picture.
8  R E S E R V E B A N K O F AU S T R A L I A  Given the importance of household spending to the overall economy, the Board will continue to pay close attention to all these indicators.