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IMF's Kammer: Positive outlook on Europe, soft landing expected
  + stars: | 2024-05-10 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIMF's Kammer: Positive outlook on Europe, soft landing expectedAlfred Kammer, director of the European department at the IMF, speaks to CNBC's Karen Tso at the IMF's Spring Meetings.
Persons: Alfred Kammer, Karen Tso Organizations: IMF Locations: Europe
"Monetary policy is appropriately tight and needs to remain so in 2024," Kammer told a news conference. "For all intents and purposes, (the deposit rate) should be held at that level or close to that level throughout 2024." Kammer warned the ECB against cutting rates too soon because that would require even more costly policy tightening later on. While the IMF sees price growth back at target in 2025, an exceptionally tight labour market could push this date back to 2026, it warned. Real wages also have some way to go catch up with inflation and this could also keep up the price pressure, the IMF said.
Persons: Ralph Orlowski, Alfred Kammer, Kammer, Balazs Koranyi, Mark Potter Organizations: European Union, European Central Bank, REUTERS, Rights, International Monetary Fund, ECB, IMF's European Department, IMF, Thomson Locations: Frankfurt, Germany, Gaza
FRANKFURT, Germany (AP) — The European Central Bank and other policymakers across Europe need to keep interest rates at current elevated levels until they're sure inflation is under control despite sluggish growth, the International Monetary Fund said Wednesday, warning against “premature celebration” as inflation declines from its peak. Alfred Kammer, director of the IMF's Europe department, warned against “premature celebration" as he spoke to journalists in connection with the outlook. The European Central Bank has raised its benchmark deposit rate by fully 4.5 percentage points between July 2022 and September 2023, from minus 0.5% to 4%. If inflation falls faster than expected, it will boost consumer real income and spending and growth might improve. But an escalation of Russia's war against Ukraine and accompanying increased sanctions and disruptions to trade could mean weaker growth.
Persons: Alfred Kammer, Kammer, , Organizations: European Central Bank, International Monetary Fund, ECB, IMF, Ukraine Locations: FRANKFURT, Germany, Europe, Washington, Israel, Gaza
Russia has adapted to living with sanctions, Kremlin spokesperson Dmitry Peskov told the press, per TASS. Peskov said Russia has been living with sanctions for decades and isn't afraid of more restrictions. AdvertisementAdvertisementIt's been 20 months since the West and its allies started slapping a barrage of sanctions against Russia for invading Ukraine — but the Kremlin doesn't seem too shaken up about the restrictions. AdvertisementAdvertisementBeyond regular businesses, the Kremlin's wartime spending has been a key contributor to Russia's economy — and that spending is driving an economic boom. While Russia's economy appears to be chugging along, the International Monetary Fund, or IMF, is muted about the country's prospects.
Persons: Dmitry Peskov, Peskov, , Vladimir Putin's, Alfred Kammer Organizations: IMF, Service, European Union, Bloomberg, International Monetary Fund Locations: Russia, Moscow, Ukraine, Soviet Union, Crimea
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIMF's Kammer: Further ECB tightening is required to defeat inflationAlfred Kammer, director of the European department at the International Monetary Fund, says core inflation is persistently high and "there's nothing worse than pausing an inflation-fighting effort too early … because if you need to do it a second time, the costs to the economy are so much larger."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEurope's banking system is sound — but we shouldn't get complacent: IMFAlfred Kammer, director of the European department at the IMF, discusses the region's economic outlook and the strength of its banking sector with CNBC's Joumanna Bercetche.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIMF's Alfred Kammer: Outlook for Europe has darkened considerablyAlfred Kammer, director of the European Department at the IMF, tells CNBC's Geoff Cutmore the outlook for Europe has darkened considerably.
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