Consumer confidence higher following RBA cut

Consumer confidence has risen 2.5 points in the past week on the back of RBA cuts according to the Roy Morgan Consumer Confidence Weekly Ratings Survey. The increase in confidence is driven by an increase in confidence of Australia's financial conditions over the next 12 months and over the next 5 years.

Gary Morgan said, "Consumer Confidence has increased to 166.4 (up 2.5points) - the second straight weekly increase after the RBA cut Australian interest rates to a record low 2.5% (down 0.25%) on the first Tuesday of August." 

36 percent of Australians expect the economy to have good times in the next 5 years compared with just 19 percent of Australians who expect bad times.

In addition, Australians are more confident about their personal finances with 33 percent of people saying they are 'better off' financially than this time last year.

With interest rates now at record lows, home owners looking to save on their home loan can compare rates on Mozo. On a $300,000 home loan with an interest rate of 5.90%, a 0.50% lower interest rate could save homeowners over $1000 a year.