IMF downgrades Australian economic forecast amid fears of interest rate hike
Australia's economy is expected to expand only modestly, with the IMF cutting its 2027 growth forecast to 1.6%. The downgrade follows concerns that the Reserve Bank may raise rates to tackle persistent inflation and higher energy costs. The report warns that a tighter monetary stance could slow growth further, affecting the Treasury’s fiscal outlook. This adjustment signals caution as global economic conditions remain uncertain.