The RBA has bettered expectations today in choosing to cut the official cash rate by 50bps.
The bank made the cut in response to benign inflation figures, weakening terms of trade and poor credit demand. A move was widely expected, with Westpac chief economist Bill Evans this week calling a cut "beyond doubt".
Nevertheless, the bank has bettered expectations. While the housing industry and retailers had called for a 50bp cut, Evans said such a move was unlikely.
"We would tend to dismiss that prospect given the general cautious approach of the RBA," he said on Monday.