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
Here we go, Reuters have posted a piece in the interview to the web, link here
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.
