Aussie confidence ratings 'are disappointing'

It appears that consecutive interest rate cuts have not been enough to encourage Aussies to start spending their money once again.

The latest Westpac/Melbourne Institute Consumer Sentiment Index has indicated that people down under are still wary of parting with their hard earned cash.

It showed that confidence levels have increased by just 0.3 per cent in June, which is a surprise considering the scale of the recent rate reductions.

The Reserve Bank of Australia has slashed the national cash rate by 75 points in the past two months, but this appears to have had a very limited impact.

It is clear that a greater number of Australians are looking to top up their savings accounts instead of spending money on luxury goods.

Westpac chief economist Bill Evans believes people are still hugely concerned about the state of the global economy.

"Sentiment has risen only 1.1 per cent from its April level and remains 1.7 per cent below the level recorded in October last year," he remarked.

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