sydneyaustralian consumer confidence fell last week snapping two weeks of gains likely dented by the prospect of rising interest rates the data comes ahead of an expected 50 basis point increase in official interest rates by the reserve bank of australia at a policy meeting later tuesday the central bank raised its cash rate by 50 basis points in june and by 25 basis points in may the rba appears anxious to get on top of a sharp spike in inflation rba gov philip lowe in midjune announced a higher inflation forecast in a television interview and said interest rates remain too low with the official cash rate currently at 085 the rba has said a neutral cash rate would be somewhere around 25 the confidence survey showed inflation expectations increased by 02 percentage point to 59 the fourweek moving average rose 01 percentage point to 58 sentiment about current financial conditions dropped 12 its eighth consecutive weekly decline future financial conditions were practically unchanged with a decrease of 01 current economic conditions increased 30 after falling 188 over the previous four weeks on the question of whether it was a good time to buy a major household item confidence fell by 54 but this may have reflected the move into a new fiscal year on july 1 which usually spells the end of sales in department stores