Aussies still concerned about their finances

Despite the fact the Reserve Bank of Australia (RBA) sanctioned a 50-point reduction in interest rates earlier this month, Aussies are still concerned about their financial position.

The latest Westpac/Melbourne Institute Consumer Sentiment Index has indicated that confidence levels across the nation have risen by just 0.8 per cent in May – a score that banking chiefs felt was disappointing given the circumstances.

Indeed, the index was measured at 95.3 this month, compared with 94.5 in April.

It appears that home loans are causing people the most sleepless nights, as banks have failed to pass on the RBA's interest rate cuts in their entirety.

"Firstly there might have been a degree of disappointment amongst households that the standard variable mortgage rate was reduced by only an average of 0.37 per cent," a statement by the Westpac/Melbourne Institute read.

The report also suggested Aussies are concerned that the huge economic and financial problems being seen in Europe could spread to the southern hemisphere.

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