IMF supports interest rate hikes around the world
The International Monetary Fund (IMF) supports raising interest rates in central banks around the world, said the head of the organization Kristalina Georgieva. Due to geopolitical crises, countries’ debts are growing faster than their economies.
The International Monetary Fund (IMF) supports raising interest rates in central banks around the world, said the head of the organization Kristalina Georgieva. Due to geopolitical crises, countries’ debts are growing faster than their economies.
“Now is probably the right time for a balanced hawkish stance in the monetary policy of many countries,” Georgieva said at a speech in Singapore.
After more than 17 years of moderation, during which inflation fell in both developed countries and emerging markets, military conflicts have triggered a sharp rise in inflation almost everywhere. Current geopolitical risks only exacerbate government deficits and debts. According to the Fund, the debt of countries is approaching the record since the Second world war – 100% of global GDP.
In September, the world’s largest central banks raised interest rates. The Bank of Japan raised the figure by 0.25 percentage points, which was the highest in 31 years. The same decision, for the first time since 2023, was made by the US Federal Reserve. The European Central Bank has done the same. In all cases, this step was explained by the desire to cope with rising inflation.
