Overview

• The Westpac-Melbourne Institute index rose 0.6% to 93.1 in July, its highest level in a year but still below the neutral 100 mark.
• Sentiment among households surveyed before the RBA’s unexpected rate hold was 95.6, compared with 92 for respondents polled after the decision.
• The family finances sub-index jumped 5.0% year-on-year and 2.6% for the next 12 months, while the index for major household purchases fell 2.6%.
• A separate ANZ-Roy Morgan weekly survey recorded a 2.1-point drop in its sentiment index to 86.5, driven by concerns about the economic outlook.
• Traders continue to price in two to three additional rate cuts in 2025, and Governor Michele Bullock has said any divergence with markets is one of timing rather than policy direction.