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Record consumer confidence lifts 2007 interest rate rise speculation

Low unemployment and tax cuts for all in last week’s federal budget have driven consumer confidence to its highest level in more than 30 years, but wage growth remains at moderate levels, according to new figures released today.

The Melbourne Institute/Westpac consumer sentiment index shows consumer confidence rose 7.5% in May to 123.9 points, the highest consumer confidence result since the index’s inception in 1975.

But wage growth for the March 2007 quarter was just 1% or 4.1%