RBAs Hauser Tilts Hawkish Ahead of Next Week

• The Westpac Consumer Sentiment Index edged up in March to 91.6 from 90.5 in February. While households remain clearly pessimistic, the headline result shows sentiment holding up somewhat.
• Later survey responses told a weaker story. As tensions in the Middle East escalated, answers collected toward the end of the survey implied a much softer reading, closer to 84.
• The NAB Business Survey also weakened, with confidence falling 4 points to -1, returning to negative territory after nearly a year above zero.
• Business conditions held steadier at +7, near the long-run average. Stronger trading conditions were offset by a softer employment component.
• RBA Deputy Governor Andrew Hauser appeared on a podcast ahead of next week’s Monetary Policy Board meeting, noting that “there will be a very genuine debate.”
• Hauser’s comments leaned hawkish, highlighting ongoing strength in the labour market and suggesting inflation risks may still be “tracking directionally higher” than the forecasts.