Australian Consumer Mood Lifts After RBA Holds Rates at 4.35%

Australia's consumer mood improved in August after the Reserve Bank of Australia (RBA) held its policy rate at 4.35%.

The Westpac-Melbourne Institute survey showed a 6.0% rise in the consumer sentiment index to 88.9, following July's 4.1% gain.

Mortgage holders' sentiment jumped 16% in August, while renters' fell 2.3%, suggesting that stable rates eased anxiety for households whose monthly payments move with the central bank.

Westpac chief economist Luci Ellis noted that 'pervasive uncertainty' holds back the outlook, which helps explain why people feel better about today than they do about the future.