InDaily

Adelaide's independent news

Support

Confidence up as consumers expect interest rate cut

News

Consumer confidence increased over the weekend amid talk of a cut to interest rates while inflation expectations fell, an ANZ analyst says.

Print article

The ANZ-Roy Morgan Australian Consumer Confidence index rose by 1.2 per cent from the previous week, although the “time to buy a household item” metric dropped 2.9 per cent.

“Consumers are upbeat about both their personal outlook and the economy in general,” ANZ economist David Plank said this morning.

“The prospect of lower interest rates and what appears to be a major sentiment shift on the housing market are likely drivers of the positive outlook”.

The weekly measure of consumer confidence is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays.

Survey respondents indicated they were anticipating lower levels of inflation.

“This is the fifth sub-4.0 per cent reading since early March – an unprecedented run of low results for this survey,” Plank said.

The Reserve Bank of Australia, which makes its next decision on interest rates on June 4, has indicated a combination of low inflation and a higher jobless rate will compel it to cut from an already record low of 1.5 per cent.

“Members discussed the scenario where inflation did not move any higher and unemployment trended up, recognising that in those circumstances a decrease in the cash rate would likely be appropriate,” the RBA minutes from May said.

– AAP

Want to comment?

Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.

We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.

InDaily has changed the way we receive comments. Go here for an explanation.

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

More News stories

Loading next article

Subscribe to InDaily – it’s free!

South Australia’s locally owned, independent source of digital news.

Subscribe now and go in the monthly draw* for your chance to WIN a $100 Foodland voucher!

Subscribe free here

*Terms and conditions apply

Welcome back!

Did you know it’s FREE to subscribe?

Subscribe now and go in the monthly draw* for your chance to WIN a $100 voucher!

Subscribe

*Terms and conditions apply