In December 2024 the International Monetary Fund (IMF) said the Reserve Bank should be ready to lift rates if inflation risks grew. It did not predict a rate rise.
Key Facts
- Report: IMF Article IV review, December 2024
- Advice: RBA should “be prepared to tighten further if upside inflation risks materialise”
- No rate rise was forecast
- Trimmed mean inflation expected back in target by end of 2025
- Later: the RBA cut rates to 4.10% in February 2025
Correction
An earlier version suggested the IMF predicted a rate rise. It only said the RBA should be ready to act if needed.
What the IMF Said
The IMF said the RBA should “be prepared to tighten further if upside inflation risks materialise”.
Update
The RBA cut the cash rate to 4.10% in February 2025.
Frequently Asked Questions
Did the IMF predict a rate rise?
No. It said the RBA should be ready if risks grew.
When did the RBA cut?
February 2025, to 4.10%.
What is trimmed mean inflation?
A measure of underlying inflation.
Conclusion
The rate rise did not happen. The RBA cut rates instead.
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