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