The Reserve Bank of Australia shall be conducting its meeting on 3 November and it is anticipated that it might slash the cash rate again. While the decrease is expected to be a modest one, it could boost people’s confidence even more.
What is Consumer confidence?
Consumer confidence is an indicator to future household expenditure. Ahead of today’s meeting, the ANZ-Roy Morgan consumer confidence index soared for a ninth straight week, gaining 0.2% to reach 99.9 points, highest level since March when the Covid-19 pandemic had hit the economy.
Meanwhile, economists all over the country have predicted that the RBA would cut the cash rate to 0.1 % from the already record low of 0.25%.
The same drop shall be considered for the bank’s target rate for its three-year bond yield and RBA’s term funding facility rate for banks.