In its latest 13-page update entitled Global Economic Outlook, the Fund called on central banks to be careful in reducing interest rates. He points out that maintaining price stability remains essential in a context of uneven growth and persistent inflationary pressures.

The IMF pointed out that despite a slight recovery in production in several economies, inflationary pressures remain a major concern. The institution indicated that central banks need to find the right balance between supporting growth and prevention of a resurgence of inflation.

According to the report, “inflation is in line or close to the objective should favour an approach based on forecasts”. The document also states that “when savings suffer from negative shocks on demand, a gradual reduction in rates directors may be considered to support economic activity, provided that risks to price stability objectives are controlled. ” The IMF pointed out that in regions where inflation remains above Objectively, a more careful, data-based approach is warranted.

The Fund emphasized the importance of the independence of central banks for the preservation of macroeconomic stability. He warned that any deviation from frames credible monetary pressures could lead to fiscal dominance, fiscal policies undermining the effectiveness of monetary policy and eroding the credibility needed to anchor inflation expectations