Tuesday, May 28, 2024

The IMF has called on central banks to remain cautious until inflation rates are contained.

Date:

The director general of the International Monetary Fund, Kristalina Georgieva, called on global central banks to remain cautious until inflation rates are tightly controlled, while the fund pointed to obstacles in restructuring the debt of troubled economies.

“I want to be clear that inflation has not fallen quickly below the target rate,” Georgieva told Bloomberg Television on the sidelines of a meeting of finance ministers and governors of the G20 member states of the world’s major economies. , in Bangalore, India. A return to price stability is convenient.

Although many central banks have started to ease policies, inflation rates around the world have remained unchanged. Georgieva believes domestic consumption will continue to be the world’s engine of growth as China reopens at a pace that has exceeded expectations, and with little risk of inflation.

Bloomberg pointed out that the US personal consumption index rose 5.4% last January compared to the same month in 2021, and the core inflation rate came in at 4.7%, marking an increase after several months of decline.

In Europe, core inflation is expected to remain at a record 5.3%, while the rate has remained flat in parts of Asia, including India. Georgieva called on relevant authorities not to drop caution as price stability is essential for investors and consumers to continue spending, which is fundamental to economic growth.

Cryptocurrency

Additionally, Kristalina Georgieva said there was some disagreement over debt restructuring for troubled economies, and that banning private cryptocurrencies should be an option. China, the world’s biggest bilateral creditor, has urged G20 nations to conduct a fair, objective and in-depth analysis of the causes of global debt problems, amid growing clamor for lenders to cut debt or accept losses.

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Georgieva told reporters after a joint meeting with Indian Finance Minister Nirmala Sitharaman that “there are still some differences of opinion… on debt restructuring”. We are now negotiating at a round table to discuss the global sovereign debt issue, taking into account all creditors from the public and private sectors.

And he added, “We have concluded a session in which it is clear that there is a commitment to overcoming differences for the benefit of nations.”

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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