IMF managing director warns central banks to 'resist' calls for early rate cuts

Banks on ‘final stretch’ of inflation battle

The managing director of the International Monetary Fund has urged central banks not to succumb to political pressure to cut interest rates early.

Speaking at the Atlantic Council, Kristalina Georgieva said high inflation across advanced economies was "not fully defeated" and could require a longer wait before reducing borrowing costs. She said major economies have, generally, seen inflation trend downwards in recent months, which she expects to continue in 2024, "creating the conditions for major advanced economy central banks to begin cutting rates in the second half of the year". Invesco and Citigroup tout May BoE cut but central bank consensus eludes economists But she heeded that the "pace and timing of the monetary pivo...