NAB now sees the RBA cutting rates twice in 2020
The Australian bank previously saw only a single cut
NAB Research discusses the latest update to its RBA policy trajectory.
"We have included an additional 25bp cut to the cash rate in our rate track. We now expect cuts in both February and June 2020 - taking the cash rate to 0.25%.
At this point, we see an increased risk of a move to 'unconventional'
policy in H2 2020 should the labour market deteriorate more
significantly than we forecast, with low inflation posing little
constraint to further easing...Should the data turn out weaker than our forecasts, there is a real prospect the RBA moves to unconventional policy in H2 2020," NAB adds.
For bank trade ideas, check out eFX Plus.