IMF issues grim Australia inflation warning, Reserve Bank hints at another interest rate rise in November

Key points

• The International Monetary Fund says Australia will have some of the highest inflation among rich countries this year. The Reserve Bank of Australia has hinted it could raise interest rates to an 18-year high at its next meeting in November.
• The IMF also warned that high government spending and debt are unsustainable and adding to inflation.
• The IMF forecasts Australian headline inflation of 3.9 per cent by the end of the year.