Australia's Westpac Leading Index fell....>

AUSTRALIA: Australia's Westpac Leading Index fell from -0.49% in January to

-0.96% in February. In the accompanying commentary Westpac write "The Index

growth rate has been running consistently below trend for 15 months. That signal

is indicative that the Australian economy is entering this extremely difficult

Coronavirus period with insipid momentum and is therefore more vulnerable to the

shock. (...) We reconfirmed that view following the announcement of the

Government's $17.6 billion Stimulus Package. Today, following even more adverse

growth developments over the last week we have revised down our growth forecasts

to anticipate an even deeper recession with the unemployment rate peaking at 7%

in the second half of 2020." Re: RBA's steps to be outlined tomorrow, Westpac

"expect these to include a further 25bp reduction in the cash rate to 0.25% -

almost certain to be the effective lower bound target for cash rate; a

quantitative easing programme that is likely to target the risk free yield

curve; and, crucially, some initiatives to provide banks with long term funding

at around the overnight cash rate that would be tied to loans to businesses and

households."