SYDNEY, Dec 10 (Reuters) - Australia's top central banker said he was surprised that consumers had been so reluctant to spend the cash from tax rebates in the third quarter, but he was confident that they would splash out over time.
Reserve Bank of Australia (RBA) Governor Philip Lowe said recent figures on third-quarter gross domestic product (GDP) had been in line with the bank's forecasts, but they had been surprised at the weakness of consumption.
The data showed the economy expended by a modest 0.4% in Q3, while annual growth ticked up to 1.7%.
Yet, Lowe said history showed Australians did eventually spend much of the windfall from tax breaks and he was confident consumption would improve over time.
