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The IMF Steering Committee urges central banks to closely monitor inflation

Washington: Thursday’s International Monetary Fund Steering Committee urged global policymakers to closely monitor pricing dynamics, but “sees” inflationary pressures that are temporary and diminish as the economy normalizes. Prompted.

The International Monetary and Financial Commission, which consists of 24 finance ministers from IMF member countries and the governor of the central bank, said in a final communiqué that the government should “carefully adjust” its domestic policies against an evolving pandemic. rice field.

“We will continue to prioritize health care costs and protect the most vulnerable, while shifting from crisis response to promoting growth and maintaining long-term fiscal sustainability, if necessary.” They said.

This week’s IMF and World Bank annual meeting talks about stagnant demand, supply chain bottlenecks, rising energy and commodity prices, and inflation concerns driven by weather events, and Tuesday’s global growth outlook Contributed to the adjustment of. ..

“Central banks are closely monitoring price dynamics and can look at temporary inflationary pressures. If the risk of unanchoring inflation expectations becomes concrete, they will act appropriately.” Told.

The term has been lowered from a previous draft that required the central bank to be ready to take “decisive action to keep prices stable.”

Sweden’s Treasury Minister Magdalena Anderson, chair of the IMF Panel, said at a news conference that “it is important to make the global value chain work better than it is today” to alleviate the global shortage of some products. He added that further initiative is needed.

The IMFC also sought clear communication by policy makers, limiting negative spillover across countries and using macroprudential tools to limit financial vulnerabilities.

The statement noted that recovery risks are declining, noting the widening gap between rich and poor countries in economic recovery and access to vaccines.

Rental reservation

The IMFC has new resilience and sustainability to support the allocation of $ 650 billion in reserve assets to provide affordable long-term funding to countries working to implement structural reforms and maintain balance of payments stability. He said he welcomed the IMF’s efforts to establish a trust.

“The RST needs to maintain the reserve asset characteristics of the SDR,” the IMFC said. “For the IMF, develop and implement the RST and work closely with the World Bank in this process to explore viable options.” To provide technical support to channel SDR through the Multilateral Development Bank. “

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The IMF Steering Committee urges central banks to closely monitor inflation

Source link The IMF Steering Committee urges central banks to closely monitor inflation

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