Increasing faith in economy killing off rate cut hopes

Hopes of an interest rate cut have faded further after the Westpac/Melbourne Institute index of consumer confidence was released showing that consumer optimism rose to its highest level since mid-1994 in July 2003. The index has risen by more than 19 per cent in the past three months.
Bill Evans, Westpac's chief economist, said the high level of consumer confidence, Australia's strong housing market, the fall in the $AUD and a strengthening US economy means the Reserve Bank's opportunity to cut rates has passed.