Forex
Home›Forex›Central Banks›RBA hike hits Australian consumer sentiment as Westpac…
RBA hike hits Australian consumer sentiment as Westpac flags another
Australian consumer sentiment fell 4.7% to 80.4 in October after the latest RBA rate increase, while fuel prices near $2.30 a litre and a 4.6% cash rate squeeze households.
Australian consumer sentiment in Australia fell 4.7% to 80.4 in October after the Reserve Bank of Australia delivered its latest rate hike, with post-hike responses reaching recession-era lows, according to Forexlive.
Forexlive said Westpac expects the RBA to raise rates again in November, viewing inflation risks as outweighing demand weakness. The report tied the squeeze on households to fuel prices near $2.30 a litre and a 4.6% cash rate squeeze.
Fuel price pressures were highlighted as the key transmission channel that could reinforce inflation pressure, even as consumer gloom raises concerns about a sharper slowdown in consumer spending into 2027. Forexlive added that this outlook is expected to support Australian short-end yields and limit downside for the Australian dollar on softer domestic data.