IMF cuts Australia's 2027 growth forecast to 1.6% on rate-hike risk

The IMF cut Australia's 2027 real GDP growth forecast to 1.6%, down 0.1 points, citing higher odds of another Reserve Bank rate hike. It expects 1.9% growth in 2026, with inflation still the central challenge and weak productivity limiting potential. Further tightening may be needed if price pressures persist.