Kristalina Georgieva, the head of the International Monetary Fund (IMF), announced the estimated date when interest rates will start to fall. Here are the details…
Kristalina Georgieva, head of the International Monetary Fund (IMF), said that the IMF is “very confident” that the global economy will make a soft landing and that they estimate that interest rates will start to fall by mid-year.
“We are extremely confident that the global economy is about to realize the soft landing we have been dreaming of for some time,” Georgieva said at the World Governments Summit in Dubai, noting that interest rates were raised last year at a pace not seen for decades.
On the possibility of interest rate cuts in leading economies such as the US, Georgieva said, “I expect that by mid-year at the latest, interest rates will be shaped in the direction that inflation has been following last year.”
Georgieva warned that the possibility of unexpected situations following the coronavirus outbreak should be taken into account and said that if the war between Israel and Hamas is prolonged, it will affect the economies of many countries.
“I fear that the conflict will be protracted because (if) it continues, the risk of spillover increases,” Georgieva said.