Westpac on the RBA (WPAC maintain expectation of a rate cut in August 2019)

Westpac published their monthly consumer sentiment survey report earlier, post is here:

• Australia Monthly consumer confidence: +1.9% m/m (prior -4.8%)

As part of the report WPAC Chief Economist Bill Evans included a snippet on the Reserve Bank of Australia

• The Reserve Bank Board next meets on May 7.
• The Governor's Statement following the April meeting saw a change in the wording of the key final paragraph. From our perspective, that change indicated a more flexible approach to interest rate policy than the 'on hold' stance we have seen since September 2016.
• The Board meeting in May will consider the staff's revised growth forecasts for 2019 and 2020. We expect these to be markedly lower than when last reported in February with growth tracking around or below potential. In those circumstances it is reasonable to expect the Board to move to a more formal easing bias in preparation for the first rate cut, which we expect to be delivered in August.