Westpac chief economist, Bill Evans, breaks with the coup by sending a rate cut

The annualized growth in the second half of 2018 was probably only 1.5%, estimates the chief economist.

In June 2011, Mr. Evans got in trouble when he predicted that the RBA would reduce interest rates. Although it was not reduced until November of this year (when several economists shared his point of view), Mr. Evans still got the credit. This time, six forecasters are already calling for interest rate cuts: Market Economics, Capital AMP, Industry Super Australia, Capital Economics, UBS and Betashares.

January's employment report was stronger than expected, with 39,100 new jobs created last month, keeping the unemployment rate stable at 5%. The number of full-time jobs increased by 65,400 and the number of part-time jobs decreased by 26,300. This caused the Australian dollar to rise to over 72 ¢ US. It fell to 71.53 ¢ US after the release of Westpac's forecast.

"The decision of the board of the reserve bank to accept the possibility of further interest rate cuts, despite record levels currently recorded, is of utmost importance," writes Mr. Evans.

The Reserve Bank has previously estimated that the property correction was "necessary development with limited contagion effects," he said.

"The approach now seems to be that the spinoffs on the rest of the economy are real and that the process of adjustment could be more important than expected."

This article has been updated to reflect the fact that six forecasters are already asking for interest rate cuts. Previously, he was referring to five forecasters.