Latest news with #Matthew Hassan
Yahoo
5 days ago
- Business
- Yahoo
Aussies' confidence rocked by shock RBA call
Australians are saying they are less confident about their financial situation as well as feeling poorer about the national economy following the Reserve Bank's shock decision not to cut interest rates. Fresh figures released by ANZ-Roy Morgan shows consumer confidence slumped 2.1 points to 86.5 over the week since the RBA announced its decision on July 8. Worse still, more than 44 per cent of Australians are now saying they feel worse than this time last year, up 2 per cent from last week. ANZ economist Sophia Angala says the fall in confidence is likely due to the RBA shocking experts and markets by holding the cash rate at 3.85 per cent, instead of cutting it by a further 25 basis points as was widely expected. 'While the previous upward trend in consumer confidence is stalled for now, we expect a resumption of the improvement this year, as robust yearly growth in disposable incomes and further rate cuts flow through to households,' Ms Angala said. Meanwhile, Westpac is reporting consumer confidence rose slightly for the month of July up 0.6 per cent to 93.1. But Westpac consumer data shows Aussie mortgage holders felt worse following the RBA decision. Those surveyed at the start of month gave a score of 95.6 while those asked after the RBA's call scored 92. Anything over 100 is considered optimistic. Westpac head of Australian macro-forecasting Matthew Hassan said sentiment Australia's consumer sentiment recovery experienced another 'false start' in July. 'While the mood improved a touch for the month as a whole, responses over the survey week show a clear disappointment following the RBA's surprise move to leave rates on hold at its July meeting,' Mr Hassan says. 'This is the third time since late last year that events have conspired to undermine promising improvements in the consumer mood.' The falling consumer sentiment follows homeowners being left frustrated with the RBA after a widely anticipated rate cut was not passed down by the central bank. The RBA handed down its decision on Tuesday July 8 to hold interest rates, which some experts called a 'cruel blow' for households. It is at odds with key economists and all four major banks who previously predicted a cut of 25 basis points. Australia's cash rate remains at 3.85 per cent. bRight Agent co-founder Aaron Scott called the surprise hold a 'cruel blow' for millions of Australian homeowners. 'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said. 'Nobody will be breaking out the Wagyu beef or shiraz. RBA governor Michele Bullock said the board was waiting to confirm whether inflation was 'still on track' awaiting the release of the more complete quarterly ABS data. 'The board decided to wait a few weeks to confirm that we're still on track to meet our inflation expectation,' she said. 'This is a very fluid situation and we will continue to watch the data here and overseas to see how it plays.
News.com.au
5 days ago
- Business
- News.com.au
Consumer confidence slumps on RBA defying market rate bets
Australians are saying they are less confident about their financial situation as well as feeling poorer about the national economy following the Reserve Bank's shock decision not to cut interest rates. Fresh figures released by ANZ-Roy Morgan shows consumer confidence slumped 2.1 points to 86.5 over the week since the RBA announced its decision on July 8. Worse still, more than 44 per cent of Australians are now saying they feel worse than this time last year, up 2 per cent from last week. ANZ economist Sophia Angala says the fall in confidence is likely due to the RBA shocking experts and markets by holding the cash rate at 3.85 per cent, instead of cutting it by a further 25 basis points as was widely expected. 'While the previous upward trend in consumer confidence is stalled for now, we expect a resumption of the improvement this year, as robust yearly growth in disposable incomes and further rate cuts flow through to households,' Ms Angala said. Meanwhile, Westpac is reporting consumer confidence rose slightly for the month of July up 0.6 per cent to 93.1. But Westpac consumer data shows Aussie mortgage holders felt worse following the RBA decision. Those surveyed at the start of month gave a score of 95.6 while those asked after the RBA's call scored 92. Anything over 100 is considered optimistic. Westpac head of Australian macro-forecasting Matthew Hassan said sentiment Australia's consumer sentiment recovery experienced another 'false start' in July. 'While the mood improved a touch for the month as a whole, responses over the survey week show a clear disappointment following the RBA's surprise move to leave rates on hold at its July meeting,' Mr Hassan says. 'This is the third time since late last year that events have conspired to undermine promising improvements in the consumer mood.' The falling consumer sentiment follows homeowners being left frustrated with the RBA after a widely anticipated rate cut was not passed down by the central bank. The RBA handed down its decision on Tuesday July 8 to hold interest rates, which some experts called a 'cruel blow' for households. It is at odds with key economists and all four major banks who previously predicted a cut of 25 basis points. Australia's cash rate remains at 3.85 per cent. bRight Agent co-founder Aaron Scott called the surprise hold a 'cruel blow' for millions of Australian homeowners. 'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said. 'Nobody will be breaking out the Wagyu beef or shiraz. RBA governor Michele Bullock said the board was waiting to confirm whether inflation was 'still on track' awaiting the release of the more complete quarterly ABS data. 'The board decided to wait a few weeks to confirm that we're still on track to meet our inflation expectation,' she said. 'This is a very fluid situation and we will continue to watch the data here and overseas to see how it plays.
Reuters
5 days ago
- Business
- Reuters
Australia July consumer optimism restrained by rate surprise, survey shows
SYDNEY, July 15 (Reuters) - A measure of Australian consumer sentiment improved marginally in July, a survey showed on Tuesday, though optimism on the economy was tempered by a central bank decision to skip a cut in interest rates. A Westpac-Melbourne Institute survey showed its main index of consumer sentiment crept up 0.6% in July, following an equally restrained 0.5% increase in June. The index was 12.6% higher than a year earlier at 93.1, but being below 100 that still meant pessimists outnumbered optimists. The Reserve Bank of Australia surprised markets last week by holding rates at 3.85%, when many had looked for a further cut following easings in February and May. Matthew Hassan, Westpac's head of Australian macro-forecasting, noted those surveyed before the decision reported an index reading of 95.6,while those surveyed after produced a reading of just 92. "The reaction checked what would probably have been a solid rise," said Hassan. "It still leaves the consumer mood stuck at 'cautiously pessimistic' levels overall." A separate weekly survey from ANZ found a similar souring in mood, as its index dropped 2.1 points to 86.5 led by concerns over the economic outlook. Likewise, the Westpac survey showed its index of the economic outlook for the next year nudged up 1.8%, while that for five years fell 2.8%. Family finances compared to a year ago did enjoy a bounce of 5.0%, while the outlook for the next 12 months picked up by 2.6%. In a disappointing note for retailers, the index of whether it was a good time to buy a major household item dropped 2.6%.
Yahoo
5 days ago
- Business
- Yahoo
Australia July consumer optimism restrained by rate surprise, survey shows
SYDNEY (Reuters) -A measure of Australian consumer sentiment improved marginally in July, a survey showed on Tuesday, though optimism on the economy was tempered by a central bank decision to skip a cut in interest rates. A Westpac-Melbourne Institute survey showed its main index of consumer sentiment crept up 0.6% in July, following an equally restrained 0.5% increase in June. The index was 12.6% higher than a year earlier at 93.1, but being below 100 that still meant pessimists outnumbered optimists. The Reserve Bank of Australia surprised markets last week by holding rates at 3.85%, when many had looked for a further cut following easings in February and May. Matthew Hassan, Westpac's head of Australian macro-forecasting, noted those surveyed before the decision reported an index reading of 95.6,while those surveyed after produced a reading of just 92. "The reaction checked what would probably have been a solid rise," said Hassan. "It still leaves the consumer mood stuck at 'cautiously pessimistic' levels overall." A separate weekly survey from ANZ found a similar souring in mood, as its index dropped 2.1 points to 86.5 led by concerns over the economic outlook. Likewise, the Westpac survey showed its index of the economic outlook for the next year nudged up 1.8%, while that for five years fell 2.8%. Family finances compared to a year ago did enjoy a bounce of 5.0%, while the outlook for the next 12 months picked up by 2.6%. In a disappointing note for retailers, the index of whether it was a good time to buy a major household item dropped 2.6%. Sign in to access your portfolio
