SYDNEY (Reuters) – Westpac Banking Corp said on Wednesday it now expected the Reserve Bank of Australia to cuts rates twice next year, taking the cash rate to 0.25% by June 2020, and believes quantitative easing (QE) will be introduced later that year.
Westpac’s previous forecast was for the policy rate to fall to 0.5%. The cash rate is currently at a record low of 0.75% after three cuts of 25 basis points since June this year.
On Tuesday, RBA Governor Philip Lowe said he did not expect to get to the point where QE would be needed in Australia.
(Reporting by John Mair; Editing by Shri Navaratnam)