Lagarde warned about prospects for even slower growth if the incoming US administration imposes tariffs and if "geopolitical tensions" result in higher energy prices and freight costs.
Inflation has fallen steeply to 2.3% from its peak of 10.6% in late 2022, shifting attention from reigning in consumer price increases to worries about ongoing weak growth.
One of the upside risks would be, for instance, if wages continued to increase significantly, in measures that would not be compatible with our target, or if profits were to increase substantially and not buffer the wage increases.
Keeping "sufficiently restrictive" rates was no longer necessary, in what was interpreted as a hint that a neutral level of interest rates is on the cards.
Collection
[
|
...
]