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The latest Reuters poll of economists showed that a majority of them see the Reserve Bank of Australia (RBA) slashing its Official Cash Rate (OCR) by 25 bps to a record low of 0.75% when the central bank meets on Oct 1st, next Tuesday.

Key Findings:

“As many as 25 of 35 economists, or 71% of those surveyed, expect the Reserve Bank of Australia (RBA) to ease its benchmark rate at its Oct. 1 meeting.

A median of 37 respondents shows interest rates are seen at 0.5% by early 2020 – considered to be the floor for policy in Australia.

In the July survey, Standard Chartered and Goldman Sachs were the only two banks to predict rates that low.

Economists’ predictions align with market pricing with financial futures showing a 74% probability of an October cut. Interest rates are then seen at 0.5% by March 2020.”