Rates fallin'
Consumer confidence leapt by +4 per cent from 114.3 to 118.9 last week, according to Roy Morgan.
Consumers must have anticipated what was coming, as the Reserve Bank announced in its Darwin meeting today that interest rates would be cut by another 25 basis points to 1 per cent.
The wording of today's Statement hinted at the possibility more cuts to come after an initial pause:
Source: RBA
The door is open to more cuts, then, and more may come later in the year, quite likely, if the spare capacity in the labour market is not absorbed.
ANZ was first out of the blocks to announce that it would pass on the full 25 basis points to borrowers this time around, but the other majors will hold back some of the cut.
Elsewhere there are record low mortgage rates available from as low as 2.89 per cent.
Elsewhere there are record low mortgage rates available from as low as 2.89 per cent.
Housing market sentiment had already turned around by May, with pent up demand unleashing a 28.8 per cent rebound in new house sales.
And housing markets are now back in the headlines, and not for building defects this time.
On the economy, now it's over to the government to do its part, starting with the planned suite of tax cuts, but hopefully with some bigger plans on infrastructure thereafter.
