VIEW: Westpac write "we have been encouraged....>

RBA: VIEW: Westpac write "we have been encouraged by these minutes from the

perspective of our rate cut call. The Board has made a clear case for the

benefits of lower interest rates, discounting arguments to suggest that it sees

little benefit from lowering rates given the very low starting point. The Board

also lays out clearly the conditions for lowering those rates around inflation

and the labour market. It appears that it has resolved the uncertainty around

the conflicting signals between growth and employment by favouring the labour

market. That is disappointing for us, given that the previous policy responses

have been linked to growth forecasts, although we expect that persistently slow

growth should begin weigh on the labour market. While prospects for a policy

response in May have disappeared, there is still ample time and data releases to

justify our timing that there will be cash rate cuts in August and November."