IMF’s Georgieva says finance leaders need to anticipate multiple inflation shocks
International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that global finance leaders may need to become more comfortable with fighting multiple bouts of inflationary pressures.
Georgieva told Reuters on the sidelines of a G7 finance ministers and central bank governors meeting in Germany that it is getting harder for central banks to bring down inflation without causing recessions, due to mounting pressures on energy and food prices from Russia’s war in Ukraine, China’s zero-COVID policies that have slashed manufacturing with lockdowns, and the need to reorder supply chains to make them more resilient.
“I think what we need to start getting more comfortable with is, that may not be the last shock,” she said, noting that she stopped viewing inflation as a “transitory” one time shock when the Omicron COVID-19 outbreak took hold late last year.
Source: Reuters (Reporting by David Lawder; Editing by Toby Chopra)