Australia’s central bank is likely to cut interest rates twice next year, taking the cash rate to 0.25% by June 2020, and then introduce quantitative easing (QE), Westpac Banking Corp said in a change to its house forecasts.

Westpac’s previous forecast was for the policy rate to fall to 0.5%. The cash rate is currently at a record low of 0.75% after three cuts of 25 basis points since June this year.

The revised outlook followed a speech by Reserve Bank of Australia (RBA) Governor Philip Lowe on Tuesday, in which he said he did not expect to have to use QE in Australia, but that it could happen if the cash rate was cut to 0.25%.

“The RBA has indicated it is prepared to push the cash rate to 0.25%,” Westpac chief economist Bill Evans said in a report.

“Westpac has always argued that monetary easing will be necessary in 2020 but assessed that the RBA would see 0.5% as the effective lower bound.”