Why the RBA will cut the cash rate to 0.1 per cent: Westpac's Bill Evans

Westpac's chief economist Bill Evans says words from the RBA governor Philip Lowe's September meeting minutes, paired with deputy governor Guy Debelle's speech last week, indicated to them monetary policy was going to change.

The September minutes, for the first time since March, mentioned something new in the monetary policy commentary.

"We are examining other ways in which monetary policy can be used to support the economy", the minutes read.

Evans says that new piece of information started the idea that the RBA may cut interest rates and change their policy, and then Debelle's speech referring to unemployment forecasts and the forecast for the economy being a "slow grind".

Debelle also pointed that policy should err on the side of overstimulating rather than under stimulating, Evans added.

"All of those factors pointed to us that the bank is likely to further cut interest rates", Evans says.

Last week Evans said the RBA rate cut would come at its next meeting in October, however changed the forecast date when it was announced the budget would come on October 6.

Watch his full video update below.