World Bank chief says gradual rate hikes, bond ‘tapering’ unlikely to control inflation

FILE PHOTO: IMF and World Bank hold Fall Meetings in Washington
FILE PHOTO: World Bank President David Malpass responds to a question from a reporter during an opening press conference at the IMF and World Bank’s 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington, U.S., October 17, 2019. REUTERS/Mike Theiler/File Photo

February 15, 2022

WASHINGTON (Reuters) – World Bank President David Malpass said on Tuesday that gradual central bank interest rate hikes and “tapering” of bond purchases are not likely to be able to control inflation that is hitting the world’s poor the hardest.

“Gradual interest rate hikes would still leave real interest rates low or negative,” Malpass said during an online event to launch the bank’s latest Development Report.

(Reporting by Andrea Shalal and David Lawder)

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