A leading economist is convinced that a rate cut to 2% is imminent before the year ends. Westpac chief economist Bill Evans believes the interest rates will drop twice – between June and December this year.
Although he understands that most economists will disagree, Mr. Evans believes that the high unemployment rate and job security issues can trigger the interest rates to drop. He predicts the unemployment rate to increase further to 6.5%, after news broke that unemployment was at its highest in 10 years at 6%.
For the past 2 years, Mr. Evans is one of the few in the industry who has accurately predicted the interest rate movements.
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