IMF’s Gopinath: Central banks need to move cautiously on cutting interest rates this year

In an interview with the Financial Times (FT) on Thursday, the International Monetary Fund's (IMF) first Deputy Managing Director Gita Gopinath expressed her outlook on inflation and central banks’ interest rate cut expectations.

Key quotes

“Central banks need to move cautiously on cutting interest rates this year.”

“Inflation to decline less sharply than last year due to tight labor markets and high services inflation in the US, Euro area, elsewhere.”

“Based on the data we have seen, we would expect rate cuts to be in the second half, not in the first half.”

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