A global economic body is urging the Reserve Bank not to raise interest rates again unless inflation expectations become untethered.
As the economy slows as a result of the global energy shock, the central bank may even be required to cut interest rates, the Organisation for Economic Co-operation and Development said.
In its quarterly economic outlook on Wednesday, the Paris-based organisation - led by former Australian finance minister Mathias Cormann - said Australia's economy had "considerable momentum" leading up to the Middle East conflict.
