Australia Westpac-MI leading index dropped from 1.4% to -0.5% in August. Westpac said “the Leading Index has held up surprisingly well during this downturn but it seems likely that there is more weakness on the way.” For example, commodity prices and equities are likely to drag the index down further based on the developments in September.

Westpac doesn’t expect RBA to make any change to policy settings until February next year. It expects asset purchases to be fully wound back by May/August next year.