Jul 8, 2026 – 11.00pmThe International Monetary Fund has downgraded its forecast growth for Australia, and the Reserve Bank’s chief economist says a period of higher unemployment may be needed to tame inflation, in the latest warnings households and businesses should brace for an economic slowdown.RBA chief economist Sarah Hunter’s comments on Wednesday about a higher jobless rate again signalled the central bank’s openness to lifting interest rates for a fourth time this year should persistent inflation not ease.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles