Consumer confidence remains stagnant, RBA to keep rates on hold: ANZ-Roy Morgan
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The news: Consumer confidence edged 0.1 points lower last week to 70.7 points, while the four-week moving average lifted to 69.1 points, according to the latest data from ANZ-Roy Morgan.
The context: Consumer confidence remained broadly unchanged last week and is currently at a 12-week high, however remains well below the neutral 100 level, according to ANZ economist Sophia Angala.
Angala added that households are feeling more confident about their personal finances, with the “future financial conditions” sub index reaching its highest level since March.
The survey also found that the “time to buy a major household item” sub index rose for a fifth straight week, driven by end-of-financial year sale promotions. However, confidence in the broader economy weakened as geopolitical tensions escalated during the week.
ANZ expects the RBA to keep the cash rate on hold at 4.35% at its meeting today, supported by a higher unemployment rate, softer household spending and relatively low consumer confidence.
The source: ANZ-Roy Morgan
