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Kristalina Georgieva, Managing Director, IMF
Central banks world wide shouldn’t rush to calm down their combat towards inflation even with the Federal Reserve signalling its personal coverage pivot subsequent yr, the chief of the Worldwide Financial Fund (IMF) mentioned on Friday.
“Typically nations prematurely declare victory after which inflation will get extra entrenched and the combat turns into more durable,” IMF Managing Director Kristalina Georgieva informed reporters in Seoul. “Don’t say hop earlier than you leap.”
The IMF chief joins European Central Financial institution President Christine Lagarde and Financial institution of England Governor Andrew Bailey in voicing warning after the Fed jolted markets on Wednesday by indicating its policymakers are turning their consideration to slicing borrowing prices in 2024.
She indicated that her recommendation utilized to the case of the Financial institution of Korea, after she met with Governor Rhee Chang-yong.
Georgieva mentioned the Fed was appropriate to sign its pivot based mostly on US knowledge, however different central banks ought to take into account their very own conditions. “Now that inflation is lowering and decelerating however at completely different factors in numerous nations, central banks need to calibrate their very own actions in accordance with home situations,” she mentioned.
Nonetheless, the combat towards inflation is in its “final mile”, she mentioned, advising the BOK to not transfer any sooner alongside its personal coverage course than knowledge enable.
Georgieva visited Seoul this week for a joint convention with the BOK on digital cash.
First Printed: Dec 16 2023 | 12:19 AM IST
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