IMF's Gopinath tells FT Fed should stay the course

Inflation has not turned the corner yet in the world's largest economy, the International Monetary Fund's number two official said.

Speaking to the Financial Times, Gita Gopinath, the Fund's deputy managing director, reportedly therefore urged the Federal Reserve to keep raising interest rates.

She pointed to data from the US jobs market and for the "very sticky" components of inflation, such as in services, to back her call.

Restrictive monetary policies needed to be maintained until there was a "very definite, durable decline in inflation".

Gopinath also reportedly favoured raising official short-term interest rates in the US to about 5% and keeping them there throughout 2023.