Consumer sentiment improves ‘across the board’ amid rate cut speculation

Independent economist Warren Hogan says consumer sentiment has improved “across the board” as talk of rate cuts increased over the summer. There is more evidence today that interest rate cuts are further off than many anticipate. “The key driver is actually that the worst of the adjustment to higher interest rates is behind us,” Mr Hogan said. “Maybe, especially when it comes to SMEs which tend to be more consumer-facing businesses, maybe the household sector is starting to loosen the purse strings a little bit earlier in 2024. “I would not be concerned about business needing to see rate cuts to keep things ticking over.”