Fed and ECB right to tighten policy: IMF's Gita Gopinath

She said it would be right for the European Central Bank to 'normalise its monetary policy by the end of the year and then tighten next year'

Inflation in the United States is "very stubborn" and the Federal Reserve should "stay the course" and tighten monetary policy or else lose credibility, said Gita Gopinath, the International Monetary Fund's first deputy managing director.

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Gopinath, in comments to German business daily Handelsblatt published on Monday, also said it would be right for the European Central Bank to "normalise its monetary policy by the end of the year and then tighten next year".