Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Australia’s Weekly Consumer Confidence Tumbles Amid Rate Jitters

Economic Indicators May 02, 2022 08:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. A man adjusts his mask on Pitt Street Mall in Sydney, Australia, on Monday, Oct. 11, 2021. Residents of New South Wales who have received both doses of the covid vaccine were on Monday again allowed to start visiting non-essential retail stores, pubs and gyms, with capacity limits. The government eased lockdown measures once 70% of people over age 16 were fully vaccinated. Photographer: Brendon Thorne/Bloomberg

(Bloomberg) --

A measure of Australia’s consumer sentiment plunged 6% last week in response to expectations that a surge in inflation will prompt the Reserve Bank to raise interest rates.

The Consumer Confidence index fell to 90.7, the lowest level since August 2020, according to a statement Tuesday from Australia and New Zealand Banking Group Ltd. A figure below 100 indicates pessimists outnumber optimists. The downcast mood follows data last week that showed consumer prices surged an annual 5.1% in the first three months of the year, the fastest pace in 21 years.

That triggered expectations that the RBA will raise its cash rate by 15-basis points at today’s meeting in what would be the first rate rise since 2010. The decision is due at 2:30 p.m. Sydney time. The ANZ report said this is the lowest confidence reading at the start of a tightening cycle since the early 1990s.

“This may see the RBA tighten more slowly than the market pricing,” said David Plank, head of Australian economics at ANZ.

Financial markets are predicting rapid rate hikes by the RBA, sending the cash rate to 2.6% at the end of this year and 3.4% by April 2023. 

Today’s data showed confidence dropped 9.6% among people “paying off their home loan.” For those who already own their home or are renting, it fell by 4.7% and 4.2%, respectively.

 

©2022 Bloomberg L.P.

Australia’s Weekly Consumer Confidence Tumbles Amid Rate Jitters
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email