Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

IMF's Gopinath urges central banks to move cautiously on any rate cuts

Published 02/12/2024, 12:19 PM
Updated 02/12/2024, 12:27 PM
© Reuters. First Deputy Managing Director of the International Monetary Fund, Gita Gopinath attends a panel on the fifth day of the annual meeting of the International Monetary Fund and the World Bank, following last month's deadly earthquake, in Marrakech, Morocco,

WASHINGTON (Reuters) - The No. 2 official at the International Monetary Fund on Monday said inflation had come down in many countries and the global economy appeared headed for a soft landing, but central banks should to move cautiously on any interest rate cuts.

© Reuters. First Deputy Managing Director of the International Monetary Fund, Gita Gopinath attends a panel on the fifth day of the annual meeting of the International Monetary Fund and the World Bank, following last month's deadly earthquake, in Marrakech, Morocco, October 13, 2023. REUTERS/Susana Vera/File Photo

"It is important to move cautiously on rate cuts, because ... you have to once you have an interest rate cut, the direction of travel becomes very clear and then everybody expects many more rate cuts, and then you end up with a lot more financial easing than you intended to have," Gopinath said in a live online interview with Foreign Policy magazine.

Looking at the United States and the strength of labor market and consumer demand, Gopinath said it would make sense for the Federal Reserve to move cautiously and hold off on rate cuts until the second half of 2024.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.