Australia Westpac-Melbourne Institute consumer sentiment rose 6.3% to 93.7 in June, up from May’s 88.1. Confidence is now “back around pre-COVID levels”, and has recovered “all of the extreme 20% drop” seen after the pandemic exploded. It’s been buoyed by the country’s “continued success” in bringing the coronavirus control and further easing of restrictions. The index is now just 2% below the average between September and February.
Westpac said that the survey would “boost confidence” around the RBA board table as they meet again on July 7. RBA Governor Philip Lowe has been clear that he’s having a wait-and-see approach on monetary policy. Negative rate is “extraordinarily unlikely”. “An earlier than expected recovery in the economy will ease pressure on that current entrenched policy stance”
