Global inflation is falling faster than expected but has not yet been completely defeated, said Kristalina Georgieva, Managing Director of the International Monetary Fund.
Georgieva urged central banks to carefully evaluate their decisions regarding lowering interest rates in the upcoming data.
She added that general inflation in advanced economies reached 2.3% in the last quarter of 2023, down from 9.5% just 18 months ago, expecting the declining trend of inflation to continue in 2024. She explained that this would pave the way for central banks in advanced economies to begin reducing… Interest rates in the second half of the year, although the pace and timing will differ from one bank to another.
She said that in the final stage of combating inflation, central banks should maintain their independence, and urged policymakers to resist calls for early rate cuts when necessary. She explained that prematurely lowering interest rates may result in new surprises for inflation, which may require another wave of monetary tightening.
2024-04-11 22:13:46
#IMF #Global #inflation #declining #faster #pace
