IMF sees interest rates to come down in H2

The International Monetary Fund (IMF) expects interest rates to come down in the second half of the current year, said its first deputy managing director Gita Gopinath on Tuesday.

It is “premature” to conclude that central banks will cut rates “aggressively” this year, Gopinath said during CNBC’s “The High Rate Reality” panel at Davos.

While inflation has come down, “the job is not done,” Gopinath added, with tight labour markets in the U.S. and Europe.

Compared to the period after the global financial crisis in 2008, the IMF official further said she expected rates to be higher in the next three to four years.