Consumer confidence has dropped to its lowest level since August, as Aussies nervously wait for today’s expected interest rate rise.
The ANZ-Roy Morgan Consumer Confidence index fell 3.2 percentage points to 83.6, down across the five mainland states.
This is well below the four-week average of 86, and miles from the neutral confidence reading of 100.
When the Reserve Bank announces the expected interest rate rise this afternoon, it will mark the ninth straight hike. This, combined with the higher-than-expected inflationary rate for December, which hit a 32-year high, suggests a lot of pain ahead.
“Household inflation expectations drifted up but are still lower than expectations during the final three months of 2022,” ANZ senior economist Adelaide Timbrell said.
“Average confidence among homeowners paying off their mortgages fell less than other housing status cohorts, though still ended the week with lower confidence than renters and outright homeowners.”
