Westpac chief economist Bill Evans has maintained his forecast for two further interest rate reductions from the Reserve Bank of Australia but has pushed out the timing of the cuts by three months after inferring that governor Glenn Stevens was “in no mood” for a February cut.

The bank now sees the next cut coming in May – delayed from February – followed by a final reduction in August – delayed from May.

Westpac says Reserve Bank Governor Glenn Stevens is unlikely to act on interest rates in the near term. Photo: Andrew Meares Credit:Andrew Meares

Mr Evans said that in an interview with The Australian Financial Review published last week, Mr Stevens “indicates quite clearly that he is in no mood for a February rate cut”.

“While we believe the case for lower rates has already been established, our forecasts for the near term have to be mindful of the thinking of decision makers,” Mr Evans said.