AUSTRALIA DATA
Source: MNI - Market News/Refinitiv
- RBA Governor Bullock sounded very cautious regarding the outlook for further easing, which may keep a lid on consumer confidence along with significant global uncertainties depending on how data and events unwind. Westpac expects rates to be left at 4.1% on April 1 but is forecasting another cut at the May 20 meeting.
- In terms of news-recall, respondents said that while domestic news had improved, it had deteriorated from overseas. “Inflation” remained the main topic though with 40% recalling it but the share seeing it as bad was down 10pp to 65%.
- Westpac notes that the improvement in sentiment was broad based as the index approaches the 100-breakeven level. The 12-month and 5-year ahead economic outlooks were stronger but still below their November 2024 peaks, when the US election was held. Both past and future family finance assessments improved.
- With the economy still creating jobs and the unemployment rate only 4.1%, unemployment expectations fell 6.3% to their lowest in over two years.
- The “time to buy a major household item” jumped 6.9% to 97.1, signalling that the recovery in household spending is likely to continue.
- The “Mortgage Rate Expectations Index” fell 2.2% to 88.2 with 36% expecting rates to fall over the next year, 22% no change and 26% expect them to rise.
- The February monetary easing boosted the “time to buy a dwelling” and house price expectations components.
Australia Westpac unemployment expectations
Source: MNI - Market News/Refinitiv
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