Consumers remain downcast ahead of the March cash rate decision, with the Reserve Bank broadly expected to hike interest rates again and inflict more pain on mortgage holders.
Consumer confidence as sampled by ANZ and Roy Morgan every week has been tracking well below monthly averages and returned another depressed result last week, falling 0.1 points to 79.9.
But the index did show a 2.9 point recovery in confidence for those paying off a mortgage despite the impending interest rate decision.
ANZ senior economist Adelaide Timbrell said the improved sentiment among mortgage holders did follow a sharp fall the week before.
Confidence among renters and outright home owners slid last week, but Ms Timbrell said both groups were still tracking above those paying off a home loan.
The subindex results were mixed, with "current financial conditions" down 1.5 points but "future financial conditions" lifting by a modest 0.3 points.
"Future economics conditions" unwound losses from the past two weeks to lift 4.7 points, while "current economic conditions" sunk 1.2 points.
"Weekly inflation expectations" remained unchanged at 5.2 per cent and "time to buy a major household item" sunk 2.7 points.
Consumer confidence remains stuck in deeply negative territory following elevated inflation and nine interest rate rises, with the RBA expected to hike for the 10th time on Tuesday afternoon.
For mortgage holders, another 25 basis point rate hike will stretch household finances even further.
Analysis from comparison site Canstar shows another cash rate hike will add $1051 to monthly repayments (compared to April 2022 levels) on the average $500,000 loan with 30 years remaining on the term.
With inflation still well above the RBA's two to three per cent target band, in recent communications the central bank has adopted a firmer stance on inflation and at the February decision indicated "further increases in interest rates" would still be needed.
The Australian National University RBA shadow board has assigned an 81 per cent probability to another rate hike on Tuesday and a 19 per cent chance the bank will hold.
"There are growing signs past interest rate increases are working their way through the economy, which are for example reflected in a weakening consumer outlook, but current economic conditions remain relatively benign," the shadow board noted.
Government Services Minister Bill Shorten said the likely rate hike would be difficult for many mortgage holders.
"It's going to be incredibly tough for families with mortgages. Quite frankly, I don't know how a lot of them are doing it at the moment," he told Sky News on Tuesday.
"I just want this cycle of pain to come to an end as soon as possible because at a certain point it's almost counterproductive."
But he acknowledged it was important not to have "runaway inflation".
© AAP 2023