Westpac Chief Economist – Bill Evans has advised the Bank to anticipate Interest Rates will fall by 1% p.a. (100bps) within the next 12 months.
Westpac announced “We now expect a sequence of rate cuts beginning with 0.25% p.a. (25bps) in December 2011 and through 2012 totalling 1% p.a. (100bps) prior to a period of steady rates in 2013”.
Westpac believe that Australia’s Fragile Domestic Markets (Non-Mining), Weakening Consumer Spending and the Economic Turmoil in Europe will force the Reserve Bank to reduce the Official Cash Rate.
Other market sources suggest that reductions in Interest Rates may occur as early as October 2011.
