Confirming that the fight against price rises is far from over, IMF’s Gita Gopinath on Tuesday said interest rates are likely to remain higher than in the period immediately after the global financial crisis.

However, there are expectations that it will decline sometime this year, the International Monetary Fund’s first deputy managing director said.

Speaking at a session during the World Economic Forum Annual Meeting 2024 here, Gopinath dismissed market bets on an interest rate cut as premature.

“The market is expecting the central bank to cut rates quite aggressively. I think it’s a little premature to draw this conclusion.

“We should expect rates to remain low for some time this year, but based on the data we’re seeing now, we expect that to be more likely in the second half of this year,” he said.

He also felt that the likelihood of a deep recession was low.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)