Grim outlook means RBA will launch QE before long

Recent data show that the Australian economy was sputtering even before the coronavirus started to spread within the country in earnest. We now think the rising number of cases in Australia will cause consumption to decline in Q2, contributing to GDP growth slowing from 1.8% in 2019 to 1.2% this year. That’s why we think the RBA will cut rates to 0.25% and launch QE before long.

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