Australia’s Westpac-Melbourne Institute Consumer Sentiment Index rose 6.0% to 88.9 in August 2026, a five-month high and the fastest monthly gain since November 2025, as mortgage holders reacted positively after the Reserve Bank of Australia left rates unchanged on August 11. The index remained below the 100 level that separates optimists from pessimists, stood 9.7% lower than a year earlier and below its long-run average of 100.2, indicating households are still broadly cautious. The rebound was concentrated among mortgage holders, with responses gathered after the RBA decision showing the main improvement, while sentiment among renters slipped marginally. Views on current family finances led the advance, and the index tracking whether it is a good time to buy a dwelling climbed to its highest since November 2025. At the same time, unemployment expectations worsened, and house-price expectations dropped 6.1% to 110.8, a three-year low, pointing to lingering concern about growth and the labor market despite some relief over borrowing costs.