RBA’s hold keeps consumer sentiment recovery in check

Last week, the Reserve Bank of Australia surprised markets by holding interest rates steady at 3.85%, which dampened consumer sentiment, causing the Westpac-Melbourne Institute index to rise only 0.6% to 93.1 in July. Despite a positive outlook for family finances and a slight increase in economic confidence, consumers remain cautious and uncertain about the future direction of the economy.

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Australian consumers feel mixed emotions after the Reserve Bank decided not to lower interest rates, causing some worries about spending and the economy.

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