IMF downgrades Australian economic forecast amid fears of interest rate hike

Global financial institution predicts Australia’s GDP will grow to just 1.6% in 2027 as Treasury faces rising energy costs and inflation The International Monetary Fund has downgraded its forecast for Australia’s economic growth in 2027, warning the Reserve Bank may have to hike interest rates further to get price pressures back under control.

The IMF also called on federal and state governments to tighten their belts, with a new report saying more disciplined budgets will rein in rising debt burdens and help solve Australia’s long-running inflation problem .

Read the original report at The Guardian.