Forex
IMF Greenlights Further Interest Rate Hikes in Australia
A global financial body has given its approval for the Reserve Bank to raise interest rates further as inflation continues to plague Australia's economy.
The International Monetary Fund (IMF) urged the Reserve Bank to prioritize returning inflation to target in the near term, with RBA governor Michele Bullock having overseen three interest rate hikes so far in 2026.
The IMF's latest check-up of Australia's economy emphasized the need for a 'soft landing', avoiding both recession and high inflation. The Reserve Bank has already implemented significant monetary policy measures to combat inflation, but the IMF believes further action is required.