Gita Gopinath, first deputy managing director of the International Monetary Fund, has warned that markets are pricing in Rate Cuts too soon and central banks will have to keep interest rates high for a longer period than some investors expect. Gopinath said that central banks should continue tightening and stay at a high level for a while to reduce inflation, even if this means risking weaker growth or much more cooling in the labor market. The IMF's comments come as investors anticipate rate cuts from the ECB and Bank of England next year.
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