Consumer sentiment hits two-year high Australian consumer sentiment has hit its highest level in more than two years amid low interest rates and rising stock markets. The Westpac/Melbourne Institute index of consumer sentiment rose two per cent in to 110.5 points in March, its highest level since the end of 2010. A reading above 100 indicates optimists outnumber pessimists among respondents, with the index having been in positive territory for the past five months. Westpac chief economist Bill Evans said consumer sentiment had risen 15.1 per cent over the past year and was at its highest point since December 2010. He said consumers were finally reacting to the 1.75 percentage points of interest rate cuts delivered between November 2011 and December 2012. "The rate cuts had been having limited impact on consumer confidence," he said. However, in recent months we have seen the accumulation of the cuts appearing to be genuinely boosting confidence. The Reserve Bank of Australia kept the cash rate on hold at three per cent, equal to its post global financial crisis low, in February and March. Mr Evans said gains on local and international stock markets since the start of 2013 had also helped lift consumer confidence. Mr Evans said the survey showed an improvement respondents' assessment of their own finances. The sub-index tracking views on family finances compared to a year ago increased by 3.9 per cent while the sub-index tracking assessments of family finances over the next 12 months rose by 3.1 per cent.