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Macro EconomyMedium•10 November 2026•
1 min read

Australia Consumer Sentiment Hits 4-Year Low Amid Rate and Inflation Pressures

Key Facts

1The Westpac-Melbourne Institute Consumer Sentiment Index fell 2.7% to 78.2 in November, its lowest reading since late 2022.
2Westpac expects the RBA to pause rate hikes in December following the recent increase to 4.85%.
3More than 70% of consumers expect mortgage rates to keep rising, while house price expectations have turned negative.

The Westpac-Melbourne Institute Consumer Sentiment Index fell 2.7% to 78.2 in November, reaching its lowest level since late 2022. According to investinglive.com, the decline followed the Reserve Bank of Australia's (RBA) decision to raise interest rates for the fifth time this year to 4.85%, coupled with persistent inflation at 4.3%.

Westpac expects the RBA to pause rate hikes in December to assess the impact of tightening, as more than 70% of consumers anticipate further mortgage rate increases. Data released on November 9, 2026, showed the sentiment index dropped from 80.4 in the previous month, while NAB Business Confidence was recorded at -15 on November 10, 2026.

Market attention turns to the upcoming release of Australian home loans and investment lending data scheduled for November 11, 2026. These figures arrive as house price expectations have turned negative for the first time since late 2022, adding further pressure to the housing sector.