Oz rate cut improves confidence
Australian consumer confidence increased slightly after the central bank cut interest rates at the start of the month, an influential index showed yesterday. The Westpac index rose 0.8 per cent to 95.3, from 94.5 in April. The Reserve Bank of Australia cut interest rates by 0.5 percentage points to 3.75 per cent at the start of the month, citing a need to boost demand and economic growth. Wage growth also slowed, weighing on confidence. The Australian Bureau of Statistics’ quarterly survey showed a 0.9 per cent rise from December to March in the private sector and 0.7 per cent rise in the public sector. That compares with a one per cent rise in the previous three months, and takes annual wage gains to 3.7 per cent in the public sector and 3.1 per cent in the private sector.