09 August 2016 at 4:56 GMT
The Sydney Morning Herald
Persistently low inflation will force the RBA to cut rates twice more in 2017 to 1%, with “the possibility of unconventional monetary policy thereafter”, National Australia Bank chief economist Alan Oster says. “With inflation forecasts still very low and the RBA showing its hand as a committed 'inflation targeter', it is seemingly less worried than we thought about using up some of its valuable remaining monetary policy ammunition, the case for further cuts from the RBA appears to be mounting,” Oster said. Perhaps most controversial in NAB's updated outlook is the suggestion that the RBA may consider “unconventional monetary policy” should the outlook deteriorate following the projected cuts in May and August.
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