Australia Westpac Leading Index rose to -0.48% in September, up from -2.28%. While still negative, the index is now well above the low seen in H1, when it tumbled to well below -5% due to coronavirus shock. The index is now in line with the average recorded over the 12 months prior to the pandemic.
On RBA rate decision on November 3, Westpac continues to expect cut in both cash rate and three year yield target from 0.25% to 0.10%. RBA is expected to introduce an open ended commitment to buy government and semi-government bonds out along the maturity spectrum to 10 years.
