IMF Backs More Rate Rises Amid Slowing Growth

The International Monetary Fund (IMF) has urged the Reserve Bank of Australia to continue hiking interest rates to combat inflation, citing weak productivity growth and rising oil prices.

According to the IMF's latest report on Australia's economy, the 'soft landing' identified in February has hit a thud, with the country's growth rate projected to slow to 1.9% in 2026 and 1.6% in 2027.

The RBA has already raised interest rates three times this year, and the IMF is recommending further increases to tackle underlying inflation pressures and uncertainty around financial conditions.