Westpac urges RBA interest rates pause as major banks hike rates

Westpac has delivered a more bullish rates outlook, saying a weaker economy means the RBA will pause its hikes in April. Photo: Getty

The Reserve Bank will pause its record-breaking run of interest rate hikes in April as the economy slows faster than expected, according to one major bank.

Westpac chief economist Bill Evans adjusted his rate horizon in a note published on Friday, saying the big-four bank now expects the official cash rate will peak at 3.85 per cent in May – down from 4.1 per cent in earlier predictions.