Did the cash rate cut really lift Aussie Confidence?

We all know that Reserve Bank of Australia (RBA) reduced the cash rate by 25 basis point last November 2011. After the said cash rate cuts last year during the Melbourne’s cup, consumer expects another rate cuts last December because of the Christmas season but unfortunately it didn’t happened. Analysts predicts that there will be another cash rate cuts this year, Is really lift Aussie confidence?

According to Westpac, recent interest rate cuts by the Reserve Bank of Australia (RBA) have failed to lift consumer confidence. It shows that Australians are still pessimistic about their financial future. Westpac Chief Economist Bill Evans said, “Despite the RBA having cut the overnight cash rate by a total of 50 basis points, with the major banks passing on the full cut to variable rate mortgage borrowers, the index is still slightly below the level which it registered before the first rate cut.” Westpac expects the RBA to cut the cash rate by another 25 basis points on February and Mr. Evans expected also to have another cut in May.