Australian consumer sentiment plunges after RBA rate hike
📉 Westpac Consumer Sentiment fell 4.7% in October to 80.4, but the headline reading masks a much sharper deterioration after the RBA’s September 29 rate hike.
⚠️ Sentiment stood at 86.9 among the 60% of respondents surveyed before the decision, then dropped to 67.2 for the remaining 40% surveyed afterward. The nearly 20% gap was the largest since Westpac began tracking daily survey responses in 2019.
💳 Pressure was concentrated in household finances and spending intentions. Assessments of finances versus a year ago fell 8%, the 12-month financial outlook declined 6.4%, and the major purchases index dropped 7.1%, while longer-term economic expectations weakened only modestly.
🏦 More than 80% of respondents surveyed after the decision expect borrowing rates to rise further over the next 12 months. With the cash rate at 4.6%, tighter policy is weighing more clearly on households, though weak sentiment alone may not be enough to stop the RBA from hiking again if inflation pressures remain elevated.
#Australia $ARB
📉 Westpac Consumer Sentiment fell 4.7% in October to 80.4, but the headline reading masks a much sharper deterioration after the RBA’s September 29 rate hike.
⚠️ Sentiment stood at 86.9 among the 60% of respondents surveyed before the decision, then dropped to 67.2 for the remaining 40% surveyed afterward. The nearly 20% gap was the largest since Westpac began tracking daily survey responses in 2019.
💳 Pressure was concentrated in household finances and spending intentions. Assessments of finances versus a year ago fell 8%, the 12-month financial outlook declined 6.4%, and the major purchases index dropped 7.1%, while longer-term economic expectations weakened only modestly.
🏦 More than 80% of respondents surveyed after the decision expect borrowing rates to rise further over the next 12 months. With the cash rate at 4.6%, tighter policy is weighing more clearly on households, though weak sentiment alone may not be enough to stop the RBA from hiking again if inflation pressures remain elevated.
#Australia $ARB
