Australia’s August consumer sentiment boosted by rate cuts

[SYDNEY] A measure of Australian consumer sentiment improved sharply in August as the third cut in interest rates this year bolstered the outlook for finances and the economy, a survey showed on Tuesday.

A Westpac-Melbourne Institute survey showed its main index of consumer sentiment climbed 5.7 per cent in July to 98.5, the highest reading since early 2022. The reading under 100 means pessimists still outnumber optimists, though only just.

The pick-up came after the Reserve Bank of Australia cut interest rates a quarter point to 3.60 per cent and left the door open to further easing this year. REUTERS