NAB forecasts an RBA rate cut in October and December

The big four Australian banks are now expecting an RBA rate cut on Oct. 1, with the National Bank of Australia (NAB) joining Westpac, Australia New Zealand Bank and Commonwealth Bank in that regard. 

The NAB expects the Reserve Bank of Australia to cut rates by 25 basis points in October and December versus the previous forecast of rate cuts in November and February. 

The probability of an RBA rate cut to 0.75 percent in less than a fortnight has surged in the last 24 hours, courtesy of a dismal Australian labor market data. 

The jobless rate unexpectedly rose to 5.3 percent in August, from 5.2 percent in July. While the economy added 34,700 new jobs, the full-time jobs fell by 15,500, the data released on Thursday showed.