Mortgage holders’ confidence crashes to lowest level since 1994 as year that ‘feels like a recession’ looms
Westpac survey results signal growing sense of ‘helplessness’ while Jim Chalmers faces growing pressure to rein in spending Confidence among mortgaged households has crashed to its lowest level in more than three decades amid a growing sense of “helplessness” about the economy, even as a dramatic shift in financial markets suggests there is now a strong chance of a Reserve Bank rate cut by this…
Recent Westpac survey results reveal a sharp decline in confidence among mortgaged households, reaching a four-year low as of November 2022. The survey indicates a growing sense of "helplessness" surrounding the economy, even as financial markets hint at a potential Reserve Bank rate cut next year. Consumer sentiment index plummeted, signaling deepening pessimism about the near-term economic outlook.
Prime Minister Anthony Albanese defended Treasurer Jim Chalmers, praising his work in budget updates aimed at curbing inflation. Matthew Hassan, Westpac's head of economic forecasting, noted that this level of pessimism was last seen in 2022, comparable to the depths of the pandemic and the GFC. Pessimism is particularly high among indebted households, with levels of worry at their worst since 1994.
The Reserve Bank Governor Michele Bullock warned that the year ahead would "feel like a recession" due to persistent cost-of-living pressures and weak economic growth. Despite expectations of another interest rate hike, financial markets now consider a rate cut by mid-next year to be highly probable.
Written by urgent.news from The Guardian Australia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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