Australia Consumer Sentiment Plunges to 80.4 Following RBA Rate Hike

Key Facts

The Westpac-Melbourne Institute Consumer Sentiment Index in Australia fell 4.7% to 80.4 in October. ActionForex reported that sentiment among respondents surveyed after the Reserve Bank of Australia's (RBA) rate hike decision collapsed to 67.2 points, highlighting significant sensitivity to rising borrowing costs.

Data indicates that consumer sentiment was relatively stable prior to the central bank meeting, but the subsequent rate hike triggered a sharp negative reaction. This decline follows the RBA's decision to increase interest rates to 4.6% on September 29, 2026, amid persistent inflationary pressures driven by higher fuel costs.