IMF: Inflation surge now appears less transitory - draft

IMF steering committee communique draft obtained by Reuters Inflation dynamics require close monitoring Policymakers must be ready to take decisive action on inflation Inflation surge still assessed as driven by temporary factors Steps need to be taken to make supply chain more resilient in the future This captures the general sentiment on inflation. Ultimately, we're headed to a real reckoning. If they let inflation run a bit hot, it could break the long-term disinflationary impulse in developed economies -- something they've been trying to do. On the flip side, low rates and low inflation have created the bond bubble and letting the air out of that could be catastrophic. Invest in yourself. See our forex education hub.

IMF: Inflation surge now appears less transitory - draft

IMF steering committee communique draft obtained by Reuters

IMF steering committee communique draft obtained by Reuters
  • Inflation dynamics require close monitoring
  • Policymakers must be ready to take decisive action on inflation
  • Inflation surge still assessed as driven by temporary factors
  • Steps need to be taken to make supply chain more resilient in the future

This captures the general sentiment on inflation. Ultimately, we're headed to a real reckoning. If they let inflation run a bit hot, it could break the long-term disinflationary impulse in developed economies -- something they've been trying to do. On the flip side, low rates and low inflation have created the bond bubble and letting the air out of that could be catastrophic.


Invest in yourself. See our forex education hub.