AU: Consumer sentiment slips as interest rates rise

The Westpac–Melbourne Institute Consumer Sentiment Index declined 2.6% to 90.5 in February from 92.9 in January. Previous surveys showed a significant weakening in sentiment as a lift in inflation stoked fears that the RBA was about to raise interest rates. Those fears were realised in February. The RBA’s 25bp hike – the first in over two years – has put renewed pressure on finances, dented attitudes towards major purchases and raised concerns about medium-term prospects for the economy. That said, the impact on sentiment overall has been relatively mild. The 2.6% decline this month compares to an average ... (