Australian consumer sentiment dropped -3.5% mom to 92.1 in October, according to the Westpac-Melbourne Institute survey, erasing all gains seen between May and August when rate cuts briefly lifted confidence. The index has returned to “firmly pessimistic” territory, signaling renewed caution among households.
Westpac said consumers were unsettled by recent inflation updates, with partial indicators suggesting annual price growth has edged back toward the top of the RBA’s 2–3% target range. Signs of stronger consumer demand and a reviving housing market have also stoked speculation that the RBA may not ease policy as quickly as previously expected.
With the RBA meeting scheduled for November 3–4, Westpac noted that a rate cut is “far from assured, though not off the table.” The bank added that the longer the RBA holds off on further easing, the greater the likelihood of deeper cuts later.
