central banks will have to hold rates high for much longer

Major central banks will have to keep interest rates high for much longer than some investors expect, Gita Gopinath, first deputy managing director of the International Monetary Fund, told CNBC Tuesday.

“We also have to recognize that central banks have done quite a bit … But that said, we do think they should continue tightening and importantly they should stay at a high level for a while,” Gopinath told CNBC’s Annette Weisbach at the European Central Bank Forum in Sintra, Portugal.

“Now this is unlike, for instance, what several markets expect, which is that things are going to come down very quickly in terms of rates. I think they have to be on hold for much longer,” she said.

The ECB…