Rate-weary consumers rally ahead of more increases

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Rate-weary consumers rally ahead of more increases
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A quiet week for economic news – good or bad – accompanied the strongest rally in consumer confidence in more than a year, but that will likely change soon.

A quiet week for economic news – good or bad – accompanied the strongest rally in consumer confidence in more than a year, but with further interest rate rises looming, overall sentiment remains solidly in the doldrums., the ANZ-Roy Morgan consumer sentiment survey showed a solid improvement in people’s perceptions of their future financial conditions.

“The board expects to take further steps in the process of normalising monetary conditions over the months ahead,” the minutes said, though reiterated governor Philip Lowe’s message that the path was not “preset”. Leading economists reiterated their expectations of a fourth 0.5 percentage point rate rise at the September board meeting, though CBA head of Australian economics Gareth Aird said it was far from a done deal.

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