Interest rates to start coming down by mid-year, fund’s chief Kristalina Georgieva predicts
“We are very confident that the world economy is now poised for this soft landing we have been dreaming for,” after some of the sharpest interest-rate hikes in decades, Ms Georgieva said at the World Governments Summit in Dubai.
On the prospect of interest rates being cut in leading economies such as the US, she added: “I expect to see by mid-year interest rates going in the direction inflation has been going in for the last year.”
She cautioned to expect the unexpected in the wake of the Covid-19 pandemic and said a prolonged war between Israel and Hamas would impact global economies.
“I fear most a longevity of the conflict because if it goes on and on, the risk of spillovers go up. Right now we see a risk of spillover from the Suez Canal,” the IMF chief said, referring to…
