Westpac's Bill Evans still expects February and March RBA rate cuts

The Westpac chief economist, Bill Evans still thinks February could be the best time for the RBA to start cutting rates.

"I don’t think that there is any doubt that they will cut rates in the first half of this year, it is just a matter of picking the timing," he told the Finance News Network.

"While most people are in denial that something could happen as soon as February I think February could be the best time for the bank to start cutting rates.
 
"The reason why February is a good time to do it, is that in February they also release their Statement on Monetary Policy and they are able to change their forecasts.

"And so, if they have cut rates at their February meeting they can provide a very detailed explanation as to why that has happened. 

"In February it will only be by about 25 basis points.

"I think we’ll see another cut this year, at the moment I favour March.

"Because I think in the second half of this year things will be starting to look better. The world economy will be starting to look a better place, particularly in China and the US.

"I think it will still be at 2%. But, by the middle of 2016 I think we’ll start to see things edging up."