National Australia Bank sees ‘significant risk’ of monetary easing next month

SYDNEY (Reuters) – Economists at National Australia Bank said on Tuesday they see a “significant risk” of a cut to the central bank’s cash rate and three-year bond yield target to 10 basis points from 0.25% now.

NAB expects further policy easing to be announced at either the October or November board meetings.

The change in view follows a speech by Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle earlier in the day where he signalled the likelihood of more monetary easing.

The RBA had slashed interest rates to a record low in an emergency meeting in mid-March to backstop the economy from the coronavirus crisis.

(Reporting by Swati Pandey; Editing by Kim Coghill)