Australia's Consumer Sentiment Index Rises After RBA Holds Rates

Australia's consumer sentiment index rose in August after the Reserve Bank of Australia held its policy rate at 4.35%, according to a Westpac-Melbourne Institute survey.

The index increased by 6.0% to 88.9, following July's 4.1% gain, but was still about 10% lower than a year earlier.

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, without delivering broad cost-of-living relief.

Westpac chief economist Luci Ellis said the outlook remains held back by 'pervasive uncertainty', which helps explain why people feel better about today than they do about the future.