The Australian economy is holding up better than expected. GDP grew 2.1 per cent over the year to June, consumer spending remains resilient and households are still managing to save - despite three interest rate rises and stubborn inflation.

Michael Thompson speaks with AMP Deputy Chief Economist Diana Mousina about what the latest GDP numbers tell us about Australian households, whether economic growth and sticky inflation have increased the risk of another interest rate rise in September, and why the surge in global bond yields matters.