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'Stand Ready' for More Interest Rate Rises, IMF Says

The IMF said resilient spending and higher energy costs could keep inflation elevated, with markets pricing an 87% chance of another RBA hike.

  • On Wednesday, the Federal Reserve lifted the target interest rate range to 3.75% to 4.00%, prompting local analysts to prepare for the Reserve Bank of Australia's upcoming policy meeting on September 28-29.
  • Amid persistent inflation pressures and uncertainty regarding financial conditions, the International Monetary Fund said on Thursday that the Reserve Bank may need to raise interest rates further.
  • Moomoo Australia and New Zealand chief market strategist Tapas Strickland warned that local equities would "face a testing morning," noting that while the rate hike was priced in, the accompanying message surprised investors.
  • Markets are currently pricing an 84% likelihood that the Reserve Bank will deliver a 25-basis-point rate rise to 4.6% on September 29, reflecting expectations for further monetary tightening.
  • Returning inflation to target is the International Monetary Fund's 'top priority,' as markets imply the cash rate could reach 4.85% by early 2027 amid ongoing efforts to tame stubborn secular inflation.
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14 Articles

PerthNowPerthNow
+2 Reposted by 2 other sources
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'Stand ready' for more interest rate rises, IMF says

Australia's economy was in a strong position before poor productivity and war in the Middle East helped push inflation into the red zone, the IMF says.

·Osborne Park, Australia
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BloombergBloomberg
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BizTocBizToc
Center

IMF Urges RBA to Stay Hawkish, Warns of Inflation Upside Risks

·New York, United States
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  • 38% of the sources are Center, 37% of the sources lean Right
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Australian Financial Review broke the news in Sydney, Australia on Wednesday, September 16, 2026.
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