Central banks should continue to focus on lowering inflation despite financial risks: IMF

Central banks should continue to focus on lowering the high levels of inflation that have been presented since last year, despite the financial turbulence that occurred a few weeks ago in the United States and Europe, indicated economists from the International Monetary Fund (FMI).

Pierre-Olivier Gourinchasdirector of the Research Department of the IMF, declared at a press conference that financial risks have increased, but are contained, so monetary policy should focus on continuing with the fight against inflation.

“Monetary policy must remain focused on lowering inflation levels (…) any expectation that central banks will give up the fight against inflation would have the opposite effect,” he said in the framework of the Spring Meetings of the IMF and the World Bank.

In recent weeks, after the collapse of Silicon Valley Bank and the problems in the US and European financial system, the discussion arose as to whether it was time for central banks to soften their rate hikes to avoid any systemic problems in the sector, this under fears of a possible financial crisis like the one observed in 2008.

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We had a turmoil in the last month and the authorities have responded appropriately and strongly. Some lessons have been learned from the financial crisis of 2008, and it must be noted that the banking system is in a better place than at that time, ”he told the press.

In this sense, he asserted that the world is not in a systemic financial crisis.

ana.martinez@eleconomista.mx