The International Monetary Fund (IMF) released its annual review of Australia on Wednesday. The IMF warned Australia that its economic growth is likely to remain below potential if the country will not implement reforms.

"Over the medium term and without reform, growth is likely to converge to a slower potential rate, reflecting less capital accumulation and only modest productivity growth. This lower potential would still mean income growth in line with other advanced countries, but significantly slower than Australians have been used to over the last two decades," the IMF said.

The IMF urged Australia to implement tax reform and to increase infrastructure spending.

The IMF also said that the Reserve Bank of Australia might cut its interest rate again if the financial stability risks remained contained.