Westpac, one of the big four Australian banks, continues to forecast February 2020 as the timing of the next Reserve Bank of Australia rate cut but acknowledges December is a real possibility.
The RBA on Tuesday cut rates by 25 basis points to a record low of 0.75% and left the doors open to further easing. The markets are now pricing in about 50% chance of a follow up move in November.
“Back in July we identified October and February as the likely dates for the next moves. At that time only 3 forecasters out of 24 in the surveys were forecasting an October move and most were not anticipating a terminal rate as low as 0.5%,” Westpac said in its report.
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