Australia Westpac consumer sentiment index dropped -0.9% to 95.8 in April, down from March’s 96.6. That’s the lowest level since September 2020. Westpac said “concerns around interest rates and inflation were starting to weigh on confidence… compounded by Russia’s invasion of Ukraine, an associated spike in petrol prices, and severe weather events.”
Westpac expects RBA to raise interest rate at June meeting, after reviewing data releases “over coming months”. Once the tightening cycle starts, Westpac expects a series of rate hikes in most months in 2022, with a pause in September. Further rate hikes can be expected in first half of 2023 and the cash rate would peak at around 2% by June next year.
