The International Monetary Fund warned against central banks rushing to cut interest rates too early. International Monetary Fund Director Kristalina Georgieva confirmed that the Fund sees this step as a “greater risk to the global economy” if it is achieved “early than if it moves a little late.”
Georgieva indicated to reporters in Washington, “The United States is close to achieving what is called a soft landing when policymakers return inflation to the desired target without causing a recession.” She said, “We are preparing for a soft landing, and we are still 50 feet above the ground.” We know that it is not over as long as we do not go down.” She called on Georgieva to return to the data and act on it.
It should be noted that the decline in inflation in many advanced and emerging economies around the world is shifting attention to when banks should start lowering interest rates to stimulate investment and economic growth.
Georgieva’s words come the day after the US Federal Reserve’s interest rate-setting committee voted in favor of maintaining the current level of interest rates.
Federal Reserve Chairman Jerome Powell ruled out the idea of cutting the rate at the next meeting in March, which led to a decline in stocks on Wall Street.
Earlier this week, European Central Bank President Christine Lagarde said that “policymakers are confident that interest rate cuts are coming, but they will not commit themselves to a specific date.”
2024-02-02 08:56:32
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