VIEW: Westpac now expect that the RBA will......>

RBA: VIEW: Westpac now expect that the RBA will cut the cash rate at its "June

Board meeting with the second cut to follow in August. We then expect the cash

rate to remain on hold through 2020. This change in forecast reflects the lift

in the unemployment rate for April from 5.1% to 5.2% and the confirmation from

the Governor that the Board would be closely following developments in the

labour market with the primary focus on the unemployment rate. The Governor's

thinking has evolved over the year to accept that, as we have observed in other

countries, upside inflation risks are consistent with a lower unemployment rate

than had previously been assessed. For Australia the Bank had believed that the

key unemployment rate was 5% - he now accepts that he can drive the economy

harder with an associated lower unemployment rate without risking any inflation

overshoot."