VIEW: ANZ continue to hold one of the more......>

RBA: VIEW: ANZ continue to hold one of the more aggressive views re: the RBA.

They note that "the RBA board reduced the cash rate by 25bp, yesterday, taking

the cash rate to a historic low of 1.00%. In a speech following the decision,

Governor Lowe cited the downside risks to global growth from the US-China trade

tension. He highlighting that strong commodity prices, reduced borrowing costs

and rising household incomes were still reasons to remain optimistic in

Australia. While the RBA has not been as explicit (in terms of forward guidance)

as they were in June, Lowe has left the door open to further easing. He noted

that the RBA remains "prepared to adjust interest rates again if needed" to get

the economy closer to full employment and meet its inflation target. This

suggests the RBA still has an easing bias and further cuts are likely. We

believe it will cut the cash rate again by 25bp in August after it updates its

economic forecasts and recognises that further rate cuts are required to get

unemployment substantially lower."