Consumers were not buoyed by the huge rate cut handed down by the Australian central bank earlier this May despite the slight climb in the current month's reading of Westpac-Melbourne Institute Index of Consumer Confidence.

The index recorded an uptick of 0.8 per cent to 95.3 in May but the level still fell short of the 100 mark, which would have indicated that consumer confidence has somewhat picked up following the reduction of 50-basis-point rolled out by the Reserve Bank of Bank of Australia.

The report was definitely a disappointment, according to Westpac chief economist Bill Evans as it came right after "a surprise 50 basis point cut in the official cash rate by the Reserve Bank and extensive media coverage that the unemployment rate had fallen from 5.2 per cent to 4.9 per cent."

"Increasingly disturbing news around Europe and specifically Greece is likely to have unnerved households," Mr Evans offered in the accompanying analysis of the report.

Also, the big four's decision not to fully pass the rate cutback benefits came as a likely letdown for most Australians, the Westpac analyst said.

"There might have been a degree of disappointment amongst households that the standard variable mortgage rate was reduced by only an average of 37 basis points," Mr Evans explained.

He added that the soft response coming from Aussie consumers would mostly balance out efforts by the RBA to stimulate specific economic movements as shown in the RBA minutes released on Tuesday.

The RBA has been hoping, the minutes showed, to spur an appropriate level of consumer borrowing in deciding to slash the cash rate by 50-basis-point, which appears to have missed the mark for now.

"I think there is an element to mortgage rates not coming down by as much as the RBA cut official interest rates," Mr Evans said.

"It's a bit of a repeat run from what's happening in December last year when the concerns in Europe were at their peak," he added while stressing that the same concerns have yet to be totally addressed in light of the changing political landscape currently underway in key European governments.

With the index pointing to a whole lot of indicators for the RBA to ponder in June, Mr Evans said he would not be surprised if the RBA board would unleash another round of easing measures either in June or July, noting that Australia still stands out as having the highest borrowing cost among the major developed economies.

"Developments overseas along with today's evidence that the recent cut has had little impact on confidence could easily see the bank bring the decision forward to the next board meeting," Mr Evans said.