Australian consumer confidence plunges to worst level since 1990s after RBA rate rise
News Source
β’Tue, 06 Oct 2026 05:54:21 GMT
π° What Happened
Australian consumer confidence fell to its worst level since the 1990s. The Reserve Bank of Australia raised interest rates for a fourth time this year, to the highest since 2011.
The Westpac-Melbourne Institute index dropped 4.7% to 80.4 in October. For people surveyed after the rate call, it fell to 67.2. That was in line with the weekly ANZ-Roy Morgan survey.
π The Backstory
The central bank raises rates to slow inflation, but it also makes loans cost more. Households have faced high prices and costly mortgages.
Westpac's Matthew Hassan said sentiment has been weak for the longest stretch since the early 1990s recession. Weak confidence can cause people to spend less. Lower spending can slow the whole economy.
π― Why It Matters
Higher rates mean bigger mortgage and loan payments. Falling confidence shows many families are struggling with costs.
Australian consumer confidence fell to its worst level since the 1990s. The Reserve Bank of Australia raised interest rates for a fourth time this year, to the highest since 2011.
The Westpac-Melbourne Institute index dropped 4.7% to 80.4 in October. For people surveyed after the rate call, it fell to 67.2. That was in line with the weekly ANZ-Roy Morgan survey.
The central bank raises rates to slow inflation, but it also makes loans cost more. Households have faced high prices and costly mortgages.
Westpac's Matthew Hassan said sentiment has been weak for the longest stretch since the early 1990s recession. Weak confidence can cause people to spend less. Lower spending can slow the whole economy.
Higher rates mean bigger mortgage and loan payments. Falling confidence shows many families are struggling with costs.