Reserve Bank of Australia outlook from Westpac:
- We now expect two cash rate cuts from the RBA in 2020 to a low point of 0.25% in June
- Quantitative Easing will follow in the second half of 2020
- while detecting a reluctance to adopt Quantitative Easing we expect that economic conditions in the second half of 2020, coupled with the need to maintain a credible easing policy, will see the RBA adopt QE in the second half of 2020
What sort of QE?
- unconventional policies, largely centred around the purchase of Australian government securities and clear forward guidance