Pierre-Olivier Gourinchas, the Chief Economist of the International Monetary Fund (IMF), stated that major central banks, including the Bank of Japan, currently see no urgent need to increase interest rates. When questioned about the direction of monetary policy amidst the Middle East crisis, Gourinchas indicated that key institutions such as the Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan have the flexibility to wait. Gourinchas noted that if inflation proves to be persistent, if a wage-price spiral emerges, or if the inflation expectations of households and businesses shift, policymakers would then need to take action. He also emphasized that while central banks cannot control oil prices, they can implement measures to prevent secondary effects and ensure that inflation expectations remain well-anchored.
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IMF States Major Central Banks Including BOJ Have No Immediate Need to Raise Interest Rates
Deep News04-14 23:52
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