Australia Westpac-Melbourne Institute consumer sentiment dropped -4.8% mom to 113.1 in May, down from 118.8. Still, it’s the second highest print for the index since April 2010. Westpac said, “The fall may also represent some disappointment in the Federal Budget as a very generous Budget was still unable to exceed the exuberant expectations of the community.”
On RBA policy, Westpac expects the board to extend QE to a further AUD 100B starting in September, and to switch the target bond in the yield curve control from April 2024 to November 2024. It said, “this view is based on the expectation that the Board will be committed to monetary stimulus (reducing QE or restricting YCC to the April bond are akin to tightening policy) for the remainder of 2021.”
