IMF deputy head urges central banks to be careful when cutting interest rates

At the same time, Gopinath warned monetary authorities against further fueling stock market speculation about rapid interest rate cuts. As soon as central banks lower interest rates, the expectation of further downward steps solidifies and in the end there is much more easing, which could be counterproductive. “Based on the data we have seen, we would expect rate cuts to occur in the second half of the year, not the first half,” she added.