I posted earlier in a preview of the Reserve Bank of Australia interest rate decision and statement for Sept.:

And, more:

Adding this in now via Shane Oliver, AMP Capital chief economist (bolding is mine):

  • RBA Governor Lowe retained an easing bias and the RBA's own forecasts leave it on track to ease again. We had pencilled in two 0.25 per cent cuts around November and February but given the increasing threat to the global outlook we have moved them forward to September and November.

And, further out:

  • While it's possible that the RBA will go below 0.5 per cent for the cash rate it's unlikely as there will be little point as the banks will struggle to pass it on to borrowers as they won't cut their deposit rates into negative territory. It's also unlikely that the RBA will move to pay negative rates on bank reserves with it as there is little evidence from Japan and Europe where that has been deployed that it actually works.
  • In fact, negative rates risk damaging the banks and their ability to lend. If the RBA wants to encourage banks to lend more it could always work with APRA to ease up on lending standards again!"
I posted earlier in a preview of the Reserve Bank of Australia interest rate decision and statement for Sept.: