IMF cuts Australia 2027 GDP forecast to 1.6%, flags RBA rate hike risk

The IMF downgraded Australia's 2027 GDP growth forecast to 1.6%, citing persistent inflation and rising energy costs, and warned the RBA may need to hike rates further. It also urged federal and state governments to tighten fiscal policy to curb debt. The revision signals a more hawkish monetary path and slower growth, pressuring Australian assets.