(Australian Associated Press)
Consumer confidence fell over the weekend after the Reserve Bank of Australia cut interest rates to a record low, an ANZ survey suggests.
The ANZ-Roy Morgan Australian Consumer Confidence index declined by 2.0 per cent from the previous week in the second consecutive decrease, with respondents’ perception of the country’s current economic conditions slumping 7.8 per cent although the “time to buy a household item” metric rose 4.9 per cent.
“Weak Q1 GDP and the soft retail figure for April have seen consumer confidence move lower over the past week despite the rate cut from the RBA,” ANZ economist David Plank said on Wednesday, adding that cuts by the central bank in 2015 and 2016 also did not immediately boost optimism.
“Inflation expectations readings below 4.0 per cent seem to have become the norm in the past couple of months, which is unique in the history of this survey and something the RBA will be taking note of,” Mr Plank said.