Westpac: RBA will cut the cash interest rate in February 2020, from 0.75% to 0.50%

Westpac maintain their view of a rate cut to come from the Reserve Bank of Australia

• The minutes of the December Board meeting strengthen our conviction that the Board is likely to ease rates further at the February meeting.
• The flow of economic data over the next six weeks will be critical to that decision, particularly updates around the labour market, retail sales and confidence.
• Given our forecasts, Westpac is comfortable with our current view that the RBA will reduce the cash rate from 0.75% to 0.50% at the February Board meeting.

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Note from Westpac's data note today on thiertheir leading indicator:

• Australia - Westpac's leading indicator for November: -0.09% m/m (prior -0.07%)