The Westpac analysts have made revisions to the Reserve Bank of Australia (RBA) cash rate forecasts for the first time in couple of years, now calling for a 25 bps rate cut each in August and November this year from the rates on hold stance.
Key Quotes:
“WPAC have revised GDP growth forecasts for 2019 and 2020 from 2.6% to 2.2%.
With slower growth profile now expect to see the unemployment rate to 5.5% by late 2019.
That makes a strong case for official rate cuts to cushion the downturn and, in turn, meet the RBA's medium term objectives.”
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