Meanwhile, ANZ's weekly consumer confidence index fell for the second consecutive week, down 2 per cent. However, the measure remained above the long-term average.

Confidence in current financial conditions, as compared to a year ago, and sentiment towards finances in a year's time fell 2.7 and 2.2 per cent on the respective indices.

David Plank, ANZ head of Australian economics, said it was "not particularly surprising" there had not been an immediate boost to confidence.

"Looking back to the rate cuts in 2015 and 2016, there was no tendency for confidence to rise immediately following the move lower in rates," he said.

Both banks pointed to weak GDP growth as a weight on consumer confidence.

The Australian economy grew 0.4 per cent in the March quarter, lowering the growth rate to 1.8 per cent, which is the slowest pace since 2009 at the end of the global financial crisis.

Daily results on the Westpac survey showed sentiment softened after the release of the GDP report on June 5.


In response to continued weakness in consumer demand, NAB revised down its forecast for annual growth this year from 2.3 per cent to 2.0 per cent.

But the group said it expected consumer demand to increase by the fourth quarter, "reflecting the timing of tax cuts and hopefully some benefits from lower interest rates".

Political divide

The Westpac study also found consumer confidence was divided by political affiliation and asset ownership.

Following the re-election of the federal government on May 18, consumer sentiment rose 7.5 per cent in the month among Coalition voters and fell 9.9 per cent among Labor voters.

Confidence among consumers with an investment property rose 9.5 per cent. Sentiment among renters fell 5.3 per cent on the index.

Mr Hassan said these divisions muffled the effect of the rate cut on housing-related sentiment, which was "clear" but "more muted than seen in past rate cuts".

The "time to buy a dwelling" index rose by 1.8 per cent, but was dwarfed by gains of more than 10 per cent following the previous cuts in 2016.


House price expectations rose a "spectacular" 22.7 per cent on the index, but remained well below the long-term average.

Eyes remain fixed on Reserve Bank governor Philip Lowe, who said in the June decision that the central bank would continue to monitor developments in labour markets and adjust policy accordingly.

Westpac found that unemployment expectations rose 5.1 per cent, reversing the previous month's decline. The measure remained slightly above average.

Citing a "more downbeat view on this front," the bank predicted the RBA would cut by 25 basis points in August, and again in November. This would take the cash rate to 0.75 per cent.