“Too Early To Say” If World Facing Sustained Inflation: IMF Chief

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IMF’s Kristalina Georgieva said global policymakers need to carefully calibrate their policies in 2022.

Washington:

The head of the International Monetary Fund said it was “too early” to say if the world was facing a period of sustained inflation, but warned that failure to make economies more resilient to future shocks could lead to big problems.

IMF Managing Director Kristalina Georgieva said that global policymakers need to carefully calibrate their fiscal and monetary policies in 2022 to factor in varying country-specific conditions, including inflation and the space for additional fiscal support.

Unlike the first year of the pandemic in 2020, when finance ministers and central bankers coordinated and synchronized their actions, circumstances varied widely now across the world, and that required more “specificity” in responses, she said.

Georgieva said the Covid-19 pandemic remained the biggest risk facing the global economy, and it was imperative to step up efforts to increase vaccination rates in low-income countries, and meet a global target of vaccinating 70% of people in countries around the world by mid-2022.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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