IMF: Fed should postpone the rate hike until the beginning of 2016. – Banker

             The International Monetary Fund (IMF) on Thursday lowered the economic growth forecasts for the United States to 2.5 percent. in 2015 and recommended that the US central bank put the Fed raising interest rates until the beginning of 2016 years.
           

 

“We think it would be better if raising interest occurs at the beginning of 2016 years” – said General Director of the IMF Christine Lagarde at a press conference, presenting the results of the annual report on the US economy.

 

Meanwhile, the head of the Fed’s earlier announcements Janet Yellen and Federal Committee. Rates implies that the first of nearly nine years a rise in interest rates should take place later this year.

 

According to the IMF, the Fed should wait until signs of growth of wages and prices will be “more visible”. Lagarde explained that higher US interest rates may lead to “very unstable direction,” appreciable consequences far beyond the borders of the United States.

 

The IMF lowered this year’s growth forecast for the US from 3.1 per cent., Projected less than two months ago, to 2.5 percent. In 2016 the economy is expected to grow by 3 per cent. Moreover, according to the IMF, inflation will start rising slightly faster than expected (0.7 per cent. In 2015), but reaches the target set by the Fed’s 2 percent. only in mid 2017 years. (PAP)

 

ic / klm /