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ISCOVER
Staff Reporter
A soaring Australian dollar has helped buoy consumer confidence.
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The Westpac-Melbourne Institute consumer sentiment index rose by 3.3 per cent to 117 in October after a 5 per cent drop to 113.2 in September.
Westpac’s chef economist Bill Evans said households reacted to a range of favourable news.
“The decision by the RBA to keep rates on hold at the October Board meeting would have buoyed consumers,” Mr Evans said.
“Moreover, since the last survey the Australian dollar has surged by 6.5 per cent. There continues to be ample media speculation it will reach parity with the USD.”
With consumer confidence now in check, Mr Evans said it was “very likely” the RBA would increase the official cash rate by 25 basis points during its November meeting.
