Vertiv Introduces New Single-Phase Uninterruptible Power Supply for Distributed Information Technology (IT) Networks and Edge Computing Applications in Europe, Middle East, and Africa (EMEA)Read more Students from JA Zimbabwe Win 2023 De La Vega Global Entrepreneurship AwardRead more Top International Prospects to Travel to Salt Lake City for Seventh Annual Basketball Without Borders Global CampRead more Rise of the Robots as Saudi Arabia Underscores Global Data and Artificial Intelligence (AI) Aspirations with DeepFest Debut at LEAP23Read more Somalia: ‘I sold the last three goats, they were likely to die’Read more Merck Foundation and African First Ladies marking World Cancer Day 2023 through 110 scholarships of Oncology Fellowships in 25 countriesRead more Supporting women leaders and aspirants to unleash their potentialRead more Fake medicines kill almost 500,000 sub-Saharan Africans a year: United Nations Office on Drugs and Crime (UNODC) reportRead more Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more

Biggest challenge for central banks is to bring inflation down: IMF chief

show caption
AFP Photo
Print Friendly and PDF

Nov 11, 2022 - 01:09 AM

ANKARA (AA) – The biggest and immediate challenge for central banks in both advanced and emerging market economies is to bring inflation down, IMF Managing Director Kristalina Georgieva said on Thursday.

“We see central banks tightening monetary policy to restore price stability. Although there is broadly an agreement among central banks that monetary policy should stay the course, challenges related to how to manage the monetary tightening cycle remain open,” she said at the 23rd Jacques Polak Annual Research Conference held in Washington, D.C.

In order to lower record inflation that climbed to its highest level in more than 40 years in some countries, central banks of major economies have begun an aggressive monetary tightening cycle.

The US Federal Reserve has hiked its benchmark interest rate by a total of 375 basis points, or 3.75%, since March; while the Bank of England raised interest rates by 75 basis points, its largest single hike since 1989, which marked the eighth consecutive hike.

Despite the aggressive monetary tightening, annual consumer inflation in the US rose 7.7% in October, while inflation in the UK jumped 10.1% in September year-on-year.

“Inflation is at multi-decade highs, with rising food and energy prices, persistent supply-chain disruptions, and mounting debt vulnerabilities. Financial conditions are tightening, while capital flows and exchange rate volatility have increased dramatically—and this is especially concerning for low- and middle-income countries as they face all these challenges coupled with financing constraints and limited access to markets,” Georgieva explained.

The IMF chief said that the priority should be to protect vulnerable households from the impact of rising food and fuel prices, and that fiscal policies should not further increase inflation and sidetrack the efforts of monetary policy.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.