Australia Westpac Consumer Sentiment rose 11.9% to 105.0 in October, up from 93.8. The Index has now lifted by 32% over the last two months. It’s also stands at the highest level since July 2018, 10% above the six-month average prior to the coronavirus pandemic. Confidence was also lifted in all states, including even Victoria (up 13.7%) which is still in lockdown. Confidence in New South Wales surged 17.5%, Queensland up 7.1%, Western Australia up 2.4%, South Australia up 9.3%.
Westpac also noted that one of the “likely factors” for the surge in sentiment was an expectation of RBA rate cut from 0.25% to 0.10% in November. Communications from RBA over the last few weeks “points to this outcome” too. And, “there seems to be no reason for the Board to delay its decision”.