Consumer sentiment recovered just over a third of April's tariff-related fall, helped by a rebound in financial markets and a straightforward election result, according to a survey by Westpac and Melbourne Institute published Tuesday.

The Westpac-Melbourne Institute Consumer Sentiment Index rose 2.2% to 92.1 in May from 90.1 in April.

"There also looks have been some support from the lower cost of petrol, which can be a big expenditure item for some sub-groups," said Matthew Hassan, head of Australian macro-forecasting at Westpac.

The "family finances vs a year ago" sub-index recorded the biggest improvement, rising 7% to 75.1, gaining back three quarters of the sharp 8.5% fall in April.

Westpac expects the Reserve Bank of Australia to cut the key rate by 25 basis points to 3.85% in May.

"Current policy settings are still weighing on the consumer, as shown by both pessimistic sentiment reads and slow growth in spending. As such, some further easing in these restrictive settings is appropriate, particularly given the more unsettled and threatening global backdrop," Hassan added.