This rise in the Index follows a sharp 5.5% fall in October. The pattern of confidence falling in response to a rate cut and recovering when the RBA remains on hold repeats what we saw earlier in the year when the Index fell by 4.1% following the July cash rate cut only to recover 3.6% in August, when the RBA left rates unchanged. This result continues to support the general view that consumers are somewhat unnerved by the announcement of low rates and media controversy around the banks’ responses. Note that looking through month to month volatility the Index has fallen by around 4% since the RBA started cutting the ... (full story)