Consumer confidence has fallen 1.2 per cent as nervous Australians wait to see just how fierce the expected rate hike announced today will be.

This follows two weeks of gains, as consumers steadied themselves after the June rate hike.

Confidence remains up in Queensland only, with falls in NSW, Victoria, WA, and SA.

Interestingly, the ‘Current economic conditions’ metric increased 3.0 per cent, plummeting 18.8 per cent over the previous four weeks.

ANZ head of economics David Plank said confidence drops are linked to respondents thinking it is a bad time to buy a major household item.

“Expectations of a further increase in the interest rate by the RBA at its meeting today could be another reason behind the dampened sentiment,” Plank continues.

“Household inflation expectations rose 0.2ppt to 5.9 per cent last week, exactly reversing its fall the week before.”