IMF warns Europe against prematurely declaring victory over inflation

The International Monetary Fund (IMF) has cautioned the European Central Bank (ECB) and other policymakers to maintain elevated interest rates until inflation is under control. The IMF emphasizes the importance of avoiding premature celebration as inflation declines, as underestimating its persistence could result in painful rate hikes that hinder economic growth. The IMF also advises a prolonged restrictive stance to ensure inflation reaches its target. The ECB, which recently paused rate increases, is said to be in a good position.

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