The ANZ-Roy Morgan Australian consumer confidence rose 3.5 points to 74.7 in the week of July 27 to Aug. 2, ANZ reported Tuesday.

The four-week moving average was flat at 74.2, per the report.

Australian consumer confidence improved last week, as stronger expectations for personal finances and easing inflation concerns boosted sentiment, reinforcing expectations that the Reserve Bank of Australia (RBA) will hold rates steady at its August meeting, according to ANZ economist Sophia Angala.

The risk of a rate hike in November remains, as inflation expectations are still elevated compared with the start of the year, while renewed Middle East tensions may keep the RBA cautious about rising inflation pressures, Angala added.

Weekly inflation expectations fell to 5.5% from 5.9%, while the current financial condition indicator for 12 months increased 1.3 points to 65.2. The future financial conditions for the next 12 months rose to 83.9 points from 77.

Short-term economic confidence for the next year rose 1.9 points to 66.8, while medium-term economic confidence for the next five years increased to 80.2 points from 77.3.

The "time to buy a major household item" subcategory gained 4.9 points to 77.6.