The IMF’s chief economist spoke in an interview with Reuters.
This follows the latest report, covered here:
Main point from the follow-up interview (Headlines via Reuters):
-
says sees signs of higher inflation expectations increasing, may
require more forceful tightening moves by central bankers - says if inflation
remains elevated for more than a couple more months in advanced
economies and wage pressures continue to rise, will likely see more
aggressive monetary policy tightening - says war is ‘piling
on’ an already elevated inflation environment, increases risk of
‘jolt’ away from stable price environment - says tight US labor
market creates demand for more ‘catch-up’ wage increases, raising
risk of wage-price spirals - says fiscal support
has been greater than needed coming out of the pandemic - IMF’s baseline
forecasts project inflation peak in second quarter, anticipate that
supply chain disruptions ease and withdrawal of fiscal support cools
demand - March slowdown in
china economic data greater than expected, but there is room for
Chinese authorities to counter this with fiscal, monetary stimulus
From earlier:
All countries except one group saw their outlooks revised lower: commodity exporters.That’s a good reminder of the state-of-play in markets.
This article was originally published by Forexlive.com. Read the original article here.