Rebuilding Global Fiscal Capacity: A Call to Action

IMF Managing Director Kristalina Georgieva emphasizes the need for governments worldwide to rebuild fiscal capacity and for central banks to time interest rate cuts carefully. Speaking at the IMF and World Bank annual meetings, she stressed the importance of fiscal priorities and data-driven decision-making for economic stability.

Kristalina Georgieva, the International Monetary Fund's Managing Director, has called for immediate action to rebuild global fiscal capacity. She highlighted the importance of strategic timing in interest rate cuts by central banks during a press conference at the IMF and World Bank annual meetings held in Washington.

According to Georgieva, the short-term focus should be on the fiscal side, as fiscal buffers have been depleted while pressures remain high. She urged governments to prioritize fiscal measures as an urgent necessity.

Furthermore, she advised central banks to base their actions on evidence and to vigilantly monitor data. This approach is essential to avoid premature or delayed adjustments to interest rates, which could impact economic stability.

(With inputs from agencies.)