RBA to now cut rates in October – Westpac

The Westpac analysts have brought forward their Reserve Bank of Australia’s (RBA) rate cut forecast to October from November seen previously.

Key Quotes:

“By October, we expect that the path of the unemployment rate will be sufficiently contrary to the RBA's plans that they will have appropriate justification to ease policy a little earlier than we had previously expected.

We recognize that September is also likely to be a "live" meeting but expect the Board will wait for more data, such as the June quarter national accounts, before moving again.

Expects further 25 bps cut now in Feb due to global growth, trade concerns.

Cites rush to ease by central banks globally, weak AU wages, consumer sentiment.”