Australia’s economy likely to slow until stage-three tax cuts, lower interest rates and easing inflation kick in, CBA says

Spending tipped to moderate until households start getting some relief in the middle of the year, CommBank chief economist says

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Australia’s economy is likely to slow until about the middle of 2024 until a combination of tax cuts, interest rate cuts and easing inflation begin to lift spending, according to Commonwealth Bank’s chief economist.

The CommBank Household Spending Insights index rose 3.1% in January, reversing most of December’s 3.5% slide, with the rebound led by a 13.5% rise in travel and recreation spending for the month, thanks in large part to record crowds at the Australian Open in Melbourne. Household goods spending was also up 10.5%.

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