Chief economist predicts potential interest rate cuts towards the second half of 2024

MacroBusiness Chief Economist Leith van Onselen has shared his economic projections for 2024, touching on cash and inflation rates. “The best-case scenario is that these attacks in the Middle East don’t disrupt global supply chains and we actually have fallen inflation globally brought down by goods primarily,” he told Sky News host James Macpherson. “What that would mean is that the central banks are likely done raising interest rates, including Australia and we could actually start seeing interest rates cuts towards the second half of this year. “That’s the best-case scenario and it would mean 18 months of pain that Australian households have suffered would start to alleviate. “And we could also potentially see lower migration than what the federal government has forecast. “That’s more – wishful thinking but if we get that, that would also ease the rental crisis. “So those are the two things I am hoping happen this year.”