Central Banks Should Resist Calls For Rate Cuts - IMF Head

The world's leading central banks must resist calls from politicians for early interest rate cuts amid concerns over stubbornly high inflation on both sides of the Atlantic, the head of the International Monetary Fund has urged.

- Phillip Inman, Richard Partington

Kristalina Georgieva said high inflation across advanced economies was "not fully defeated" and could require a longer wait before reducing borrowing costs.

The IMF managing director alluded to the political pressure that central bank chiefs were likely to face in a pivotal election year for the US, UK and European Union.

"On this final stretch, it is doubly important that central banks uphold their independence," she said, adding: "Where necessary, policymakers must resist calls for early interest rate cuts. Premature easing could see new inflation surprises that may even necessitate a further bout of monetary tightening."