The Director of the International Monetary Fund, Kristalina Georgieva, believes that the number of loans granted by financial institutions has not yet decreased sufficiently.
Why is this important?For more than a year, central banks have been fighting inflation by raising interest rates. This is the most restrictive policy since the 1980s, when key interest rates rose to 5 percent in the United States and between 3.25 and 4 percent in Europe. While everyone expects the US Federal Reserve (Fed), unlike the European Central Bank, to hit the pause button. But the IMF threw a spanner in the works.
In the news: Gives Kristalina Georgieva CNBC An update on the interest rate situation.
- According to the IMF chief, it is not yet time for the Fed to change course: “We are not yet seeing a significant slowdown in lending. There is some slowdown, but not of a magnitude that would make the Fed take a step back. It does.”
- However, the decline in lending is a reality in the US and the banking crisis in March affected credit conditions
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