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Consumer confidence continues to drop despite rate cuts

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Consumer confidence has dropped to the lowest level in four years amid growing concerns about the state of the Australian economy.

Consumer sentiment fell by 5.5 per cent in October, having fallen a total of 8.4 per cent since the RBA started cutting rates in June.

Westpac chief economist Bill Evans tells Ross Greenwood there is no current economic emergency.

“I think that the debate about whether there should be more fiscal policy support is unnerving consumers.

“I think as we go through next year, and the government become entirely confident that they can deliver on their election promise of a budget surplus, they’ll see the need for fiscal stimulus and that’s clearly what we’re crying out for now.”

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