The 0.25 per cent cut to the official cash rate might have been among the biggest news headlines of last month, but it hasn't had the impact on consumer sentiment many experts had expected. The ANZ-Roy Morgan Australian Consumer Confidence Index registered at 113.9 during the week to 10 May, a result that remained flat compared to the previous week.
One of the indicators that didn't see much improvement was people's views of their own finances, which were down 0.8 per cent. This could mean they're not as prepared to move out of Belconnen rentals and into homes of their own than many analysts would have thought.
As for future finances, this index declined 1.2 per cent, while the perception of economic conditions over the next five years remained flat. This isn't a situation most experts expected to see after such a historic decision.
Head of Australian economics at ANZ Felicity Emmett said: "Typically a cut in the RBA's cash rate tends to lift confidence, and on its own we expect that was a positive factor for confidence given the lift in consumers' views towards buying a household item."
Many of the country's biggest lenders have already announced they'll be reducing rates on their home loan products as a result of the cash rate reduction on 3 May. The Reserve Bank of Australia (RBA) revealed that current economic conditions meant a cut was necessary – but now the onus is on mortgage companies to make sure consumers benefit.
For help making the step from Belconnen rentals into your own home, be sure to speak to our team of experts. We're on hand to make the move easier and find a property whether it's your first or the latest addition to your portfolio.