I posted earlier on the rise in positive sentiment among consumers:
With this pic illustrating the recovery:
I've seen some attributing the rise to factors such as stabilising house prices and expectations of a Reserve Bank of Australia rate cut.
The 'oh dear' in my headline is 'cause what if the RBA does not cut?
The meeting is next Tuesday (June 4). Market pricing (OIS) is currently at 84%. Far be it from me to question such a strong expectations … but … RBA Gov Lowe said the board would consider a cut at the June meeting. I call Lowe "Dr. No" for a reason … 'cause so far in his tenure he has been a big fat 'No' for rate cuts.
Sure 'consider' … but consider is not a done deal. There are plenty of decent arguments for an on hold decision (and yes, plenty for a cut too).
Anyway ….
Dear Consumers,
Don't go counting your chickens just yet,
Regards
Eamonn