Australia’s Westpac Consumer Sentiment index edged up 0.6% mom to 93.1 in July, but the modest gain masked a clear sense of disappointment among households.
Westpac noted that sentiment was noticeably stronger before the RBA’s July meeting, with those surveyed prior to the decision reporting a reading of 95.6. That slipped to 92 among those surveyed after the RBA unexpectedly held rates steady, suggesting the decision dashed hopes for relief.
As a result, consumer confidence remains stuck at what Westpac called “cautiously pessimistic” levels.
Looking ahead, markets are eyeing the RBA’s next meeting on August 11–12. While the central bank may pause again if Q2 inflation overshoots, the more likely scenario is a confirmation that inflation stays inside the 2–3% target range. That would pave the way for a 25bps rate cut in August, with another expected in November.
