Westpac is now predicting 4 interest rate cuts by September 2012 as the European debt crisis spreads and Australian consumer confidence wanes.
It's a dramatic turn of sentiment, after the Reserve Bank consistently warned Australian borrowers to be prepared for higher interest rates throughout 2011.
Westpac expects unemployment to rise and the Australian dollar to fall back below parity with the US dollar.
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SBS World News Australia will be speaking with Westpac Global Head of Economics, Bill Evans on Saturday for more details.
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