Australians concerned about their financial situation

Personal finances are a concern for an increasing number of Australians, according to the results of a new study.

The Westpac-Melbourne Institute survey, which measures consumer sentiment, registered a drop in confidence after the rating hit its lowest level in two years – falling by 2.6 per cent in June from May.

Speaking to the Australian, Westpac chief economist Bill Evans pointed out that it is personal finances that are causing the biggest headache, with an improvement noted in sentiment regarding the economy as a whole.

"We see that more confidence about the near-term outlook for the economy is offset by respondents' concerns about their own financial position," he stated.

The research also revealed that homeowners in Australia are worried that interest rates will rise, after being held at the same level for seven months.

On June 7th, the Reserve Bank of Australia decided to hold rates at 4.75 per cent, with a statement from governor Glenn Stevens noting that the board believed "the current mildly restrictive stance of monetary policy remained appropriate".

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