Capital Economics with the call, forecasting the Reserve Bank of Australia to cut its cash rate to 0.25% by early in 2020
- and launch quantitative easing sometime in 2020
CE cite the past:
- Underlying inflation was moored well below the lower end of the RBA's 2-3% target band
- despite the housing market was booming
- and the labour market was tightening
And the future:
- unemployment rate set to rise to 5.5% next year
- interest rate cuts increasingly ineffective
- it would be naïve to expect inflation to reach the Bank's target anytime soon
