Emerging Markets Face Complex Challenges Amid Trade War Impact

Gita Gopinath of the IMF highlighted the varied impacts of trade wars on central banks in emerging markets, contrasting it with the COVID-19 pandemic when monetary policies were quickly adjusted. She discussed the unpredictable effects of tariffs on these economies, adding complexity to the roles of central bankers.

The trade war's impact is presenting complex challenges for central banks in emerging markets, unlike during the COVID-19 pandemic when monetary policies could be swiftly eased, according to Gita Gopinath of the International Monetary Fund (IMF).

In a discussion with the Financial Times, Gopinath, the IMF's first deputy managing director, emphasized that the random effects of tariffs on developing economies and global markets would complicate the tasks faced by central bankers.

"The challenges they confront this time will surpass those seen during the pandemic," she stated, highlighting the heightened difficulty.

(With inputs from agencies.)