VIEW: NAB "have changed the timing of our.......>

RBA: VIEW: NAB "have changed the timing of our previous rate call, bringing

forward the next cut to October, with a follow-up to occur in December.

Previously we expected a 25bp cut at each of the November and February board

meetings in combination with some indication of likely unconventional policies

going forward should more stimulus be needed. However, it appears that the

impact of income tax cuts has been muted, or at least failed to offset growing

weakness in the household sector. Furthermore, we previously anticipated some

further support from fiscal policy but now believe this is unlikely in the near

term. With monetary policy involving longer lags, we think the urgency to lower

rates sooner has increased. Longer term, we still think that unless there is

meaningful fiscal stimulus the RBA is likely to cut to 0.25% and adopt

unconventional policy by mid-2020."