IMF Cautions Europe Not to Claim Premature Victory Over Inflation
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IMF warns Europe against declaring victory over inflation too soon as it takes years for inflation to return to normal levels.
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Keeping interest rates high is necessary until inflation is fully under control, even though growth is sluggish.
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Underestimating inflation's persistence could force another painful round of rate hikes, hurting growth.
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Inflation in Europe has fallen from its peak but is still high at 2.9% in October.
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Europe is headed for a soft landing after rate hikes, IMF forecasts 0.7% growth this year, but outlook remains uncertain.