Australian consumer confidence jumped in November, reflecting households’ brighter outlook on the economy and lowering the likelihood of an immediate interest rate cut.

According to a Westpac Banking Corp. survey released on Tuesday, sentiment climbed 12.8% to 103.8 points.

This marks the first time since February 2022 that optimists outnumbered pessimists, breaking a 44-month streak of cautious sentiment among Australian consumers.

“This is an extraordinary and somewhat surprising result. November marks the first ‘net positive’ read on consumer sentiment in the best part of four years,” according to Matthew Hassan, Westpac’s head of Australian macro forecasting.

“Domestically, there are clearer signs that a recovery is gaining momentum, especially around consumer demand and housing markets,” he said. “The real surprise, though, is how much these positives have outweighed renewed concerns about inflation and the outlook for interest rates,” he added.

The Reserve Bank left interest rates steady at 3.6% last week, reflecting ongoing concerns about persistent inflation and a tight labour market.

Governor Michele Bullock indicated that further rate cuts are unlikely in the near term, following three reductions earlier this year, Bloomberg reports.

The boost in consumer confidence was largely driven by households’ improved view of their financial situation. The family finances next 12 months sub-index jumped 12.3% to 109.1, Westpac noted, even though expectations among mortgage-holding households dipped slightly by 0.3%.

Even with stronger confidence in the economy and household finances, consumers are growing more concerned about employment.

The Westpac–Melbourne Institute Unemployment Expectations Index edged up 9.3% to 139.5 in November, indicating that a larger share of Australians anticipate rising unemployment over the next year.