The International Monetary Fund (IMF) backed further interest-rate increases by the Reserve Bank of Australia (RBA) as persistent inflation pressures and higher energy costs threaten to keep inflation elevated, Commonwealth Bank of Australia (ASX:CBA) said in a Thursday note.

The IMF warned that rising global energy prices could fuel inflation expectations, urging central banks to consider rate cuts only if growth weakens significantly and inflation is clearly under control, per the report.

It also called for more ambitious productivity reforms, including stronger competition, reduced regulation, greater infrastructure investment and tax changes such as replacing stamp duty with land tax.

On housing, the fund welcomed government measures including changes to property investor tax incentives and increased support for build-to-rent, social and affordable housing.

The IMF said Australia's artificial intelligence and data-center boom could support economic growth and productivity, while warning that rising electricity demand and construction pressures could fuel inflation if renewable energy investment does not keep pace.