Westpac expects the economy to improve in 2015, fuelled by further interest rate cuts and a lower Australian dollar.

The bank recently altered its interest rate forecasts to include two cuts by the Reserve Bank in the first half of 2015.

“We expect growth in the Australian economy to gradually improve in the year ahead as strengthening household finances, low interest rates, and a competitive Australian dollar boost domestic spending,” chairman Lindsay Maxsted told Westpac’s annual general meeting.