Stronger consumer sentiment has encouraged the Reserve Bank of Australia to leave the official cash rate at 2% for the fourth consecutive month.

Mortgage Choice chief executive officer John Flavell (pictured, above) said: “Over the last month, the domestic economy has shown signs of improvement, with building approvals, consumer sentiment and property prices all on the rise.

“Data from the Australian Bureau of Statistics found the number of dwelling units approved over the month of July rose 4.2%, which is a good sign for the housing market and broader economy.

“In addition to improving building approval numbers, data from the Westpac Melbourne Institute of Consumer Sentiment found confidence climbed 7.8% in August to 99.5.”