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.
But Australia's gross domestic product growth rate would slow to 1.9 per cent in 2026 and 1.8 per cent in 2027, in year-average terms, largely as a result of the energy shock.
The Australian Bureau of Statistics reported GDP grew at 2.5 per cent in the 12 months to March
