Consumer Confidence dropped to lowest in 8 months in Australia 

Australian economy announced its Consumer Confidence for April to record the lowest since 8 months, especially during the highest borrowing cost that negatively affected on mortgage holders that pays the highest borrowing costs.

Australian economy released Westpac Consumer Confidence for April where the actual reading reflects a drop with 1.6% compared with a previous reading of -5.0%.

Today’s reading considered the weakest since August last year, where the Reserve Bank disappointed investors and consumers by not cutting the interest rate, adding that borrowers’ confidence slumped 5.1%.

Moreover, the Reserve Bank should take today’s drop into consideration during the upcoming rate meeting in order to lower the interest rate, where Governor Glenn Stevens noted last week that he might end a three month pause in rate cuts if the nation’s economy witnessed a weaker growth.

From another side, concerns over house prices, high debt levels and job security increased especially in households, in addition of expected higher unemployment rate during the upcoming period before cutting the interest rate by the Reserve Bank that kept it steady at 4.25%.

Meanwhile, the biggest four lenders in Australia raised variable mortgage rate by 10 basis points in February according to higher wholesale funding costs.

Australian economy lower performance was expected starting from the deficit of its Trade Balance in February that recorded 480.0 million Australian dollar while expectations was leading to a surplus with 1100 million Australian Dollar.