Slowing momentum on disinflation could further delay interest rate cuts, warns IMF 

Fund warned that slowdown in falling inflation signalled bumps along the path

The IMF also warned that wage growth, which it said reflected a "catch-up of real wages" following a period of high inflation, could make it difficult for firms to moderate price increases if combined with weak productivity. (AP Photo/Andrew Harnik, File)

Slowing momentum in the fight against inflation could further delay the easing of interest rates, the International Monetary Fund (IMF) has warned. 

In an update to its World Economic Outlook, the Washington-based fund said that stubborn inflation in the services sector could keep interest rates higher for longer, warning that "the momentum on global disinflation is slowing, signalling bumps along the path."