Consumer confidence jumps 4%, but Westpac says economy still needs rate cut

Consumer confidence rose 4.2% in February as the impact of two interest rate cuts in November and December began to feed through, though economists warn that figure is still below the reading taken at the same time last year, according to the latest Westpac-Melbourne Institute Index.

Economist Bill Evans also says the result is difficult to interpret given the survey was finished only three days after the Reserve Bank decided to keep interest rates on hold, despite media indicating a cut was all but confirmed.