Reserve Bank will have to raise interest rates again because inflation still too high, IMF says

Fund recommends further monetary tightening by RBA to ensure Australia's price rises return to target range by 2025

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The International Monetary Fund says the Reserve Bank will have to increase interest rates again because Australia's inflation rate on current settings won't slow to within the 2%-3% target range until early 2026.

The IMF's latest assessment of the health of the economy, released on Wednesday, said that while the inflation rate was declining it remains too high", with the rising costs of services remaining sticky" despite 12 interest rate rises by the RBA so far.

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