Australian Consumer Confidence Slumps Amid Interest Rate Uncertainty

Australia's consumer confidence remains stuck in a slump, according to the latest ANZ-Roy Morgan Australian Consumer Confidence report. The report showed sentiment rose 2 percentage points in the week ending September 13 to 74.6 points, but this reading still falls below the neutral level of 100 points and short of the 26-year average of 108.5 points.

Brokers say the drop in confidence is causing potential buyers to wait on the sidelines. Amol Agrawal, founder and finance broker at Juice Finance, said there's lots of uncertainty among buyers. 'People are still looking but not taking that next step of putting an offer in,' he explained.

The Reserve Bank of Australia (RBA) has already raised the official cash rate three times this year, bringing it to its current level of 4.35%. The RBA has repeatedly stressed that its goal is to bring inflation back within the target band of 2% to 3%, but the latest consumer price index (CPI) shows inflation remains above the band.