Australian Consumer Sentiment Slumps to Four-Year Low as Mortgage-Holder Confidence Hits Record Depth

Australian consumer sentiment fell 2.7% to 78.2 in November, sinking to a four-year low and dragging mortgage-holder confidence down 11.6% to a record low of 68.1. Widespread pessimism is being driven by persistent 4.3% annual inflation, high fuel costs, and the Reserve Bank of Australia's recent rate hike to an 18-year high of 4.85%. While 72% of surveyed consumers expect borrowing costs to rise further, the 12-month economic outlook plunged 10.2% to 70.3. The deteriorating conditions have bolstered forecasts that the RBA will pause rate hikes in December, with markets pricing in rate cuts next year.