Interest Rates Heading South says Westpac’s Bill Evans

In an interview late last month Bill Evans said that he expects that interest rates will be cut by .25% on 7 February 2012.  This will bring Australia’s official cash rate to 4%.  It currently stands at 4.25%.

Mr Evans believes that rates will bottom out at about 3.75% and may then sit at that level for some time.

While Mr Evans expects our economy to continue to grow and increase that rate of growth he also pointed to the well documented risks in the global economy.

Mr Evans remarked on slowing growth in China which as dropped from 12% in 2009/2010 to 9.5 in 2010/2011 and now he expects to see no better than 7.5% growth in China this year.

Watch out for stimulus packages throughout the world.