Free Trial

BTPs lead core FI lower

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Consumers Reassured By Lower RBA Hike


Westpac consumer confidence for October fell 0.9% m/m to 83.7, which is still higher than the recent trough in August of 81.2. With rates expected to rise further and petrol prices higher, a pullback in consumer sentiment was highly likely.

  • Westpac says that the smaller-than-expected rate rise on October 4 helped to avert a larger fall in confidence. Sentiment among those surveyed after the RBA meeting (88.7) was up 14.7% compared with those pre-meeting (77.4). The survey was conducted between October 3 and 6.
  • Westpac doesn’t expect this RBA “relief rebound” to persist over the coming months.
  • Despite the setback in October, it still looks like consumer confidence is forming a tentative trough but at levels consistent with a crisis. However, survey details were not as bad as the headline would suggest, with “family finances vs a year ago” jumping 18.8% for example.
  • Westpac warned not to read too much into the increase in unemployment expectations as they were coming from near-record lows and it is too early to call this a trend.
  • The very negative sentiment is being driven by the cost of living, rising rates and concerns regarding the near-term economic outlook.
Consumer confidence vs spending intentions

Source: MNI - Market News, Westpac, CBA

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.