Central bank independence key to low and stable inflation – IMF

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Independent central banks and a credible fiscal outlook are the main factors that allow emerging countries to reduce inflation, say researchers at the International Monetary Fund.

The IMF analyses how monetary policy normalisation in developed economies can affect the inflation outlook of emerging markets in the chapter 3 of October’s World Economic Outlook.

“Where market participants think inflation is going to be in 3–5 years down the road is what is the key for inflation outcomes in these m

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