Survey: Australian consumer confidence falls to 18-month low.

Last week, consumer confidence in Australia fell sharply as consumers are weighing the possibility of a rate hike at the beginning of next month. According to a survey by ANZ Bank and polling firm Roy Morgan, Australian consumer confidence dropped 5.2 points last week to 79.3, the lowest level in 18 months. The currency market reflects a 30% probability of an interest rate increase by the Reserve Bank of Australia next month, but if the fourth-quarter inflation data released at the end of this month shows further deterioration in the inflation outlook, this probability may increase. The Reserve Bank of Australia has signaled that it will not further cut interest rates, while also emphasizing that recent inflation rates have deviated from the target level of 2.5% and are on the rise. ANZ Bank economist Sophia Angala said: "Although we expect the Reserve Bank of Australia to keep interest rates unchanged in the long term until 2026, we believe that the risks of a rate hike in the first half of this year have increased."