The IMF is urging central banks to be ‘cautious against sudden interest rate hikes’

The International Monetary Fund (IMF) has warned central banks to be wary of spreading to emerging markets with rising interest rates, although the $ 1.9 trillion stimulus package passed in the United States will benefit many countries and help improve aid.

IMF Foreign Relations Director Gery Rice At a weekly press conference, he said the $ 1.9 trillion U.S. Rescue Plan Act would increase U.S. GDP by 5-6 percent in the next three years, but needed more analysis to come to a final forecast. Stating that the unusually low dollar financing is a risk of a sudden tightening of financial conditions, Rice stressed that it should be carefully managed.

According to a Reuters report; “For the Fed and the central banks of other developed economies, this means maintaining open economies, evaluating their economies, and avoiding an unwanted strain on financial market conditions in their development views on asset trading and interest rate policies,” he said.

Rice said emerging markets and emerging economies, especially those with financial openness and weak trade ties with the United States, need to prepare for emergency policies.

The IMF will announce its global economic forecasts as part of the World Economic Outlook during the IMF-World Bank Spring Meetings on April 5-11. Meetings will be held in practice.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button