Australian sentiment strong despite rate hike
Thursday, 15 November 2007
SYDNEY, Nov 14 (AFP): The hike in Australian interest rates has not affected consumer sentiment as much as expected, which could mean another rate rise is on the cards, according to a new survey released today.
The monthly Westpac-Melbourne Institute index of consumer sentiment fell only 4.2 per cent for November after the rate was boosted to an 11-year high, far less than after previous increases by the central bank.
"This is another surprisingly robust result," Westpac chief economist Bill Evans said.
"After each of the last five interest rate increases going back to March 2005, the index has fallen by an average of 10.8 per cent," he said.
The monthly Westpac-Melbourne Institute index of consumer sentiment fell only 4.2 per cent for November after the rate was boosted to an 11-year high, far less than after previous increases by the central bank.
"This is another surprisingly robust result," Westpac chief economist Bill Evans said.
"After each of the last five interest rate increases going back to March 2005, the index has fallen by an average of 10.8 per cent," he said.