Macquarie Group CEO, Shemara Wikramanayake, forecasts that Australia’s economy is primed for interest rate reductions in 2024, aiming for a “soft landing” following a prolonged period of inflation.

Speaking at the Australian Financial Review Business Summit, Wikramanayake highlighted that the country’s unemployment rate is nearing its pre-COVID level, while inflation has decelerated. According to Wikramanayake, central bankers are approaching a juncture where they can contemplate reducing rates later in the year, paving the way for a soft economic transition that was unforeseen by many analysts.

She emphasized the potential for a gradual adjustment in monetary policy to support economic stability amidst evolving inflationary dynamics and employment trends.

Source: Reuters