The International Monetary Fund (IMF) said in its report on Australia that the country's central bank may need to raise interest rates further this year in order to bring inflation down to its target.
The report noted that IMF executive directors "highlighted the potential need for further monetary tightening to achieve the targeted inflation range by 2025 and recommended a data‑dependent approach." The directors also commended Australia's "progress on fiscal consolidation and commitment to debt sustainability" but stressed the need for "a tighter fiscal stance."
The Reserve Bank of Australia (RBA) raised interest rates multiple times in 2023, bringing its key rate to 4.35%, but decided to hold rates at its last meeting.
