Westpac Bank released its consumer confidence index for Australia on Wednesday. The index climbed 8.5% in May, after a 0.4% decline in April.

The index was driven by rises in all sub-indexes.

“Our analysis indicates that the dominant driver of the boost to confidence has been the rate cut,” Westpac Chief Economist Bill Evans said.

“The Reserve Bank board next meets on June 7. We expect the Board to keep rates on hold at that meeting although we are expecting a further rate cut at the August meeting,” he added.

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