- The IMF told the Reserve Bank of Australia to stand ready to raise interest rates as needed, saying inflation risks remain tilted to the upside.
- IMF staff named returning inflation to the RBA's 2-3% target band the near-term priority, and said a tighter government fiscal stance would help disinflation.
- The Article IV concluding statement keeps the near-term RBA policy bias tilted toward a hike rather than an early pivot to cuts.
Quotes
“Returning inflation to target should be the near-term priority”
“Australia's central bank should stand ready to hike interest rates as needed given inflation risks remain tilted to the upside”