Interest Rate Statement by IMF President Kristalina Georgieva

International Monetary Fund (IMF) President Kristalina Georgieva stated that Central Banks should raise interest rates until they reach the 'neutral level' in order to fight inflation, but said that this point has not yet been reached.

Making an assessment to Reuters before the European Central Bank's critical interest rate decision to be taken tomorrow, IMF President Kristalina Georgieva stated that the positive effect of interest rate hikes by Central Banks globally may begin to be felt in 2024. "At this point, we are looking at reaching the neutral level. And we are not there yet." President Georgieva added that high inflation undermines growth and that this phenomenon especially affects the poorest segments of society, and therefore central banks should raise interest rates. "The IMF expects the impact of central bank actions to start to be seen by 2024," Georgieva said when asked how long central banks will raise interest rates. The IMF chief underlined that the benefits of interest rate hikes may not be seen quickly and that it is necessary to be 'patient'. https://twitter.com/BloombergHT/status/1585245784236244993 Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!