Australia Westpac Consumer Sentiment rose 4.1% to 112 in December, up from 107.7. It’s now 48% above the trough in April, and hit the strongest level since October 2010. Westpac said, “after only eight months the evidence seems clear that sentiment has fully recovered from the COVID recession.”
Westpac expects RBA to lower its unemployment forecast a raise growth forecasts at its February meeting. Also, “markets will be watching the RBA’s approach to its yield curve control policy. By 2022, if the near term forecast is for the unemployment rate to be returning to near pre COVID levels, it will be difficult to justify forward guidance that the cash rate will remain on hold for a further three years.”
