<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian mortgage holders hoping for a belated Christmas present next year might need to prepare for more Reserve Bank </span><a href="https://www.9news.com.au/interest-rates" rel="" target="_blank" title="rate hikes"><span>rate hikes</span></a><span> if inflation doesn't take a dip.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The International Monetary Fund (IMF) flagged the bleak possibility of another RBA interest rate hike in 2025 in its annual economic health check shared just days before </span><a href="https://www.9news.com.au/christmas" rel="" target="_blank" title="Christmas."><span>Christmas.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While core inflation has been slowly working towards the RBA's target range of 2-3 per cent, 2025 could still bring a fresh hike should disinflation stall, the Washington-based IMF warned.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/business-collapse-numbers-australia-explained-interview-exclusive/950ca384-a678-4537-94b2-b18ec0f359d2"><strong><span>Why Belinda and many others were forced to shutter their business</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"If disinflation stalls, tighter monetary and fiscal policies may be necessary," it wrote in an update on Australia's economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Inflation is anticipated to sustainably return to the RBA's target range only by the end of 2025, while a potential stall in disinflation poses a significant risk."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The IMF also noted it is concerned the government's fiscal policy is currently working against the RBA's restrictive monetary policy, which contradicts the end goal of disinflation.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/interest-rate-hike-2025-international-money-fund-report/83c29b88-c764-4041-b2f0-bf7c06f32ed6" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Expenditure rationalisation at all levels of government could help reduce aggregate demand and support a quicker return of inflation to its target," the report added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It also warned Australia's disinflation pace is slower than other similar advanced economies. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/police-officer-dressed-as-grinch-leads-drug-bust-in-peru/7e2bcf97-743a-4e93-b516-3bb0ddf5a9e7" target="_blank" title="Police officer dressed as the Grinch makes drug bust"><strong><span>Police officer dressed as the Grinch makes drug bust</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/double-demerits-christmas-2024-new-year-when-do-they-start-state-by-state-guide/a349b6c6-ff87-4230-b9ef-378dcdf50349" target="_blank"><strong><span>State by state: When double demerits apply over Christmas and New Year</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While the RBA is one of the last central banks to cut rates among peers (along with the Norges Bank [in Norway]), this also reflects a later peak in inflation and a subsequent later tightening of rates than in some peers," the IMF said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Next year's economic policies should also focus on tax overhauls and to zero in on Australia's housing crisis, the IMF stated.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It echoed its call for the government to end the 50 per cent capital gains tax discount in a bid to reform the tax system.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A comprehensive policy package is essential to tackle Australia's housing affordability crisis, focusing on increasing the construction workforce, relaxing zoning regulations, advancing initiatives to boost new housing supply, and reevaluating property taxes and stamp duty."</span></div></div>