VIEW: Westpac write "The November SMP...........>

RBA: VIEW: Westpac write "The November SMP provides the clearest insight yet

into the RBA's thinking about policy in 2020. The acceptance that, after rates

reach a certain threshold, other policy options "might come into play" is quite

significant. The recognition that asset prices are an additional channel of

monetary policy and are assessed to be a positive channel is also important. The

overview of the RBA's growth outlook, while largely unchanged from August, still

appears to be overly optimistic, particularly around the residential

construction cycle and business investment. On the other hand, the downbeat view

on wages, inflation and the unemployment rate make it clear that the RBA does

not believe that its job is done and so we can expect further policy action from

the RBA in 2020. Westpac continues to expect the RBA to cut to 0.50% in February

2020 and to move to unconventional policies at an appropriate time."