NAB Research discusses its revised RBA Rate call.
"We have pushed out our expected timing of the next cash rate cut by the RBA to February 2020, where we expect a further reduction of 25bps to a new low of 0.5%. It is at this level of the cash rate where the RBA has previously stated it would outline a ‘package’ of unconventional policies if further monetary easing is required to support growth, full employment and the return of inflation to target. The RBA Governor is speaking on “Unconventional Monetary Policy” on November 26th," NAB notes.
"As previously outlined we see the risk of a move to unconventional policy by mid-next year without material support from fiscal policy. We think that initially the RBA could flag a package of options at around a 0.5% cash rate and would begin to implement these as rates are cut further in this scenario. Initially, we think it is highly likely the RBA would shift to an explicit form of forward guidance and purchase government bonds," NAB adds.