The weakness in GDP growth and the labour market revealed after the June2019 Board meeting justified the cash rate cut at that meeting. Another cut in July is needed to help consolidate the intended future effects on the real economy. If fiscal stimulus measures are sufficiently established by the new Morrison government, further cuts in the cash rate may be unnecessary within the next 12 months. However the global outlook for the next 12 months does not look promising for the Australian economy, and it is possible that both fiscal and monetary easing may be further required.