The IMF called on central banks to tighten monetary policy
The International Monetary Fund (IMF) has asked the US Federal Reserve Board (FRA) and other major central banks to "stay the course" on monetary tightening and remain vigilant in the fight against inflation. This was announced by the spokeswoman of the Fund, Julie Kozak, at a press briefing, quoted by Reuters and BTA. Kozak also said the momentum in US inflation has slowed but remains a concern.
"If inflation does prove to be more persistent than expected, then the Fed may need to raise interest rates for a longer period of time," she added.
According to her, on July 25, the IMF is expected to publish an updated report on world economic prospects.
"We see challenges for the global economy in the medium term, and this requires policy measures to be taken now," Kozak recommended and expressed confidence that "central banks must continue the course of monetary policy tightening to decisively reduce inflation."
Commenting on US inflation, an IMF spokeswoman said it had slowed but "remains an urgent concern".
"Our advice remains unchanged, namely that the Fed will need to maintain the course of its monetary policy to ensure sustained reductions in inflation," Kozak added.