Australian Consumer Gloom Grows With Rates Ready to Rise Again

By James Glynn

SYDNEY--Australian consumer confidence continued to slide last week as the Reserve Bank of Australia continued to signal it intends to raise interest rates further given growing upside risks to inflation.

Consumer confidence fell 1.5 points last week to 70.5 points, its lowest level since May. The four-week moving average dropped 1.1 points to 72.1 points, according to a survey by the ANZ Bank and pollster Roy Morgan.

The decline was led by weaker confidence in personal finances, which may have been influenced by expectations of a potential rate hike ahead of this week's RBA meeting, said ANZ economist Sophia Angala.

Despite the recent rise in gasoline prices alongside higher oil prices, inflation expectations eased during the week, although they remain elevated compared to the beginning of the year, she added.

Weekly inflation expectations declined 0.4 percentage points to 5.7%, while the four-week moving average ticked down 0.1 percentage points to 6.0%, the data showed.

The RBA is expected to announce its fourth interest rate rise this year at 0430 GMT, while leaving the door open to a another hike in November.

The lengthening war in the Middle East, and factors such as surging investment in artificial intelligence data centers, are expected to be cited as reasons for the increase in rates.

A further hike in November will take the official cash to its highest level since 2008.

Confidence in current financial conditions decreased 2.0 points, while future financial conditions declined 5.1 points, the survey showed.

The weekly ANZ-Roy Morgan Australian consumer confidence rating is based on 1,029 interviews conducted online and over the telephone during the week to Sunday.

-Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

September 28, 2026 20:05 ET (00:05 GMT)