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[sludgehound]

Australia opens lower & sentiment drops
Down -1.1% early on.
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RESERVE BANK OF AUSTRALIA ASSISTANT GOV KENT SAYS FURTHER EASING MAY BE APPROPRIATE IN FUTURE
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AUSTRALIA MAR CONSUMER SENTIMENT DROPS TO -1.2% VS PREV 8.0%
SYDNEY --Australian consumer confidence fell in March, despite the central bank lowering interest rates in February and signaling it plans at least one more cut in coming months.
The Westpac Banking Corp. / Melbourne Institute index of consumer sentiment fell 1.2% in March from February to 99.5 points, below the 100-point level that means optimists outnumber pessimists.
"Interest rate moves often generate a big initial reaction that dissipates over time," said Matthew Hassan , senior economist at Westpac.
The Reserve Bank of Australia lowered its benchmark interest rate in February to a record-low 2.25% and left open the possibility of at least one more cut in coming months.
Falling business confidence, weak job markets, crumbling business investment and a mixed global outlook have some economists predicting the RBA will need to cut its cash rate below 2.0% over time.
Still, the central bank faces the problem of frothy home prices in cities such as Sydney , and must move cautiously to avoid creating an asset-price bubble.
-Write to James Glynn at [e-mail]

(END) Dow Jones Newswires
03-10-15 1930ET
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