Posted 1/16/2024, 8:11:43 AM
IMF's Gopinath: Rate Cut Expectations Premature, Inflation Fight Not Done Yet But Soft Landing Prospects Improve
- Market expectations for rapid rate cuts are premature, battle against inflation not over yet according to IMF's Gopinath
- Labor markets remain tight, jobs slowing but at gradual pace
- Probability of soft landing increased, inflation down without much economic activity loss
- Policy rates will be higher than post-financial crisis period long-term
- ECB's Villeroy says first rate cuts likely this year, agrees soft landing likely