VIEW: Westpac have pushed back their "timing....>

FED: VIEW: Westpac have pushed back their "timing for the next rate cut from the

FOMC from Dec to Mar next year. However, we retain our expectation that there

will still be three cuts from the FOMC, with the terminal rate settling at

0.875% by Sep '20. Key to this view is that we expect growth in the US to slow

to around 1.5%yr in '20 - well below potential (1.8%) & the FOMC's current

forecast of 2.0%. The statement following the decision to cut rates at the Oct

meeting sends a clear message about the FOMC's intention to pause near term.

Chairman Powell confirmed that position in the subsequent press conference where

he noted that monetary policy is in a good place & that "a material reassessment

of our outlook" would be necessary to justify further easing. Westpac's approach

to forecasting policy is to base our outlook for policy on our economic

forecasts outside the next 2-3 month "window". However, in the very near term,

we must adhere to the direct signals from the central banks' guidance. The clear

message from the FOMC's latest meeting is a case in point. There is always the

chance that there will be a major unexpected shock that will warrant a response,

but we cannot make that the basis of our forecasts."