Early on Monday morning in Asia, the Westpac confirms its previous estimation of a 25 basis points (bps) cash rate cut from the Reserve Bank of Australia (RBA). The bank cites the latest monetary policy meeting minutes favoring their forecasts.
Key quotes
“Bank will cut the cash rate by 25 basis points on October 1 and again by 25 basis points on February 4, 2020.”
“That call updated our previous call on May 24 when we were the only forecaster (Bloomberg Survey on that day) to argue that the cash rate would fall below 1%.”
“The most important development was the release of the September RBA Board minutes.”
“The minutes of the Reserve Bank Board’s September meeting contain similar themes to the August minutes but indicate that the Board acknowledges that it is getting closer to its next move on policy.”
“In these minutes there is no reference to previous actions. Arguably reference to previous actions is a clear sign that the Board is content to observe developments whereas not referring to previous actions there is less emphasis on the need to wait.”
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