RBA minutes validated our February rate cut forecast - Westpac

Westpac is more convinced that ever the Reserve Bank of Australia (RBA) would cut rates by 25 basis points to a new record low of 0.5% in February. 

The dovish tone of the minutes of the RBA's December meeting  strengthened our conviction that the board is likely to ease rates further at the February meeting, Westpac said. 

Key quote

The flow of economic data over the next six weeks will be critical to that decision, particularly updates around the labour market, retail sales and confidence. 

The minutes released Tuesday showed the policymakers judged that stimulus from rate cuts outweighed any negative impact on confidence and stood ready to deliver further stimulus if required.