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Business

Poppy Johnston

More interest rate increases are warranted, says IMF

International Monetary Fund Australia Economy Jim Chalmers Reserve Bank

A housing market correction is one issue threatening Australia's economic prospects, says the IMF. (Darren England/AAP PHOTOS) (AAP)

Australia is on track to dodge a recession but the International Monetary Fund says more interest rate hikes are warranted.

The IMF has slightly downgraded its growth expectations for Australia and anticipates growth slowing from 3.6 per cent in 2022 to 1.6 per cent in 2023, down a touch from the 1.7 per cent predicted in November.

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