IMF chief economist sees more inflationary pressures

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GENEVA, Dec 9 (Reuters) – Central banks have no room to maintain ultra-expansionary monetary policy and low interest rates, the chief economist of the International Monetary Fund (IMF) said on Thursday.

Gita Gopinath argued at a World Health Organization (WHO) event on vaccine financing: “We are now in the phase where countries around the world simply do not have the space to maintain a very loose monetary policy, to keep interest rates extremely low. “

“We are seeing inflationary pressures building up around the world,” he said.

“We think of a situation that could make this pandemic last longer, there are longer supply disruptions that are putting inflationary pressures, and then we run the real risk of something that we have avoided so far, which is concerns about stagflation.” Gopinath added.

(Reporting by Stephanie Nebehay. Edited in Spanish by Marion Giraldo)

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