BlackRock’s Hildebrand Wants IMF to Address New Economic Reality

Rates won’t come down quickly as inflation is sticky, he says
Says geopolitical risk premium is ‘much higher’ than in past

WATCH: “This world of stickier inflation, low growth and high interest rates is more likely to persist,” Hildebrand says.Source: Bloomberg

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By Alice Gledhill and Francine Lacqua

October 9, 2023 at 9:45 AM UTC

Updated on

October 9, 2023 at 11:10 AM UTC

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BlackRock Inc. Vice Chairman Philipp Hildebrand said the International Monetary Fund should frame discussions this week around the new economic reality, where central banks are less able to support growth by cutting interest rates.

“We are going to be in a much more sticky inflation environment and rates will not be able to come down to respond to weakness,” Hildebrand said in an interview with Bloomberg TV on Monday. “That should be the framing of the IMF and I hope they start to pay attention to these new structural conditions.”