Analysts at Rabobank expect the RBA to re-embark on further easing next year, as the government's reaction to growing pressure to spend is set to have implications for monetary policy and the AUD over the medium-term.

• "Last month a Guardian Essential poll indicated that 56% of respondents would argue that the Morrison government should stimulate the economy rather than prioritize its long-promised budget surplus.
• Despite accommodative monetary policy conditions, like most other G10 economies Australia has seen very little wage inflation in recent years. The prevalence of soft wage inflation has led the RBA to conclude that Australia is not yet at full employment.
• The RBA has had the benefit of having avoided the use of unconventional policies to date. This has allowed it the luxury of assessing the impact on policies such as quantitative easing from a strong vantage point."