IMF Warns of Inflation Risks & Cautions on Monetary Policy

The International Monetary Fund (IMF) has issued a stark warning about the looming threat of inflation and financial instability, urging central banks to remain vigilant in monitoring inflationary pressures triggered by tariffs. The IMF urges caution against premature monetary easing measures that could fuel further increases in risky asset valuations. To maintain stability, the IMF stresses the crucial role of central bank independence, enabling these institutions to effectively manage market expectations and fulfill their critical roles. !