Economists predict the first RBA rate cut

The possibility of the US Federal Reserve reducing rates three times in 2024 was also acknowledged, though experts like Cooke (pictured below) speculated on the limited immediate impact such moves would have on Australian policy.

Despite concerns over economic stimulation and consumer spending, 73% of the respondents believe these cuts will not significantly impact inflation levels.

Nicholas Frappell of ABC Refinery suggested that the short-term effects of the tax cuts could alleviate some cost-of-living pressures without substantially altering household financial conditions. Both Peter Munckton (pictured above right) from the Bank of Queensland and Mark Crosby of Monash University echoed the sentiment that the tax cuts would have a modest effect on economic growth.

Some experts, however, warned of the potential for inflation to rise due to increased consumer spending. Noel Whittaker, an adjunct professor at QUT Business School, pointed out that more disposable income could lead to higher expenditure. Similarly, Nicholas Gruen from Lateral Economics said that significant tax reductions might fuel inflation unless balanced with other policy measures.