UBS have changed their forecasts from the rbaa Reserve Bank of Australia cash rate

  • Now see two 25bp rate cuts ahead
  • Cut in November 2019
  • Followed by another in the first half of 2020
  • UBS had been forecasting no change in rates through 2019 and 2020.

This comes after Governor Lowe switched the bank to a neutral from a tightening bias.

UBS citing:

  • GDP seen slowing to a below trend 2.3% this year
  • labour market losing some momentum
  • little pressure on inflation

UBS also mention what the risk is to its view, i.e. fiscal stimulus larger than expected