WASHINGTON/BRUSSELS (Businesshala) – The International Monetary Fund’s Steering Committee on Thursday urged global policymakers to closely monitor pricing dynamics and act appropriately to address inflation risks, including transient inflationary pressures. Including seeing what will fade.
“Central banks are closely monitoring price dynamics and may see inflationary pressures that are transitory. They will act appropriately if the risks of de-anchoring inflation expectations become substantive, the International Monetary and Financial Committee (IMFC) said in a final release.
The language was dropped from an earlier draft asking central banks to be prepared to take “decisive action to maintain price stability”.
Concerns about inflation, sluggish demand, supply chain constraints, high energy and commodity prices and weather events, have become a heightened concern at the annual meetings of the IMF and World Bank in Washington this week.
The 24-member IMFC, which represents the divergent interests of the Fund’s 190 member economies, has called for clear communication by policymakers to use macroprudential tools to limit negative cross-country spillover and limit financial vulnerabilities. called upon.
The statement noted a growing gap between rich and poor countries in economic recovery and access to vaccines, noting that recovery risks are sloping downward.
“Against a complex environment, we will carefully examine our domestic policies for the evolving pandemic and available policy space,” the committee said, adding that health spending was a top priority, while in some countries the focus was to boost growth from the crisis. may be transferred. Long term fiscal stability.
IMFC said it has set up a new Resilience and Stability Trust to help allocate $650 billion of reserve assets to provide affordable long-term financing to countries making structural reforms and working to maintain balance of payments stability. welcomed the efforts of the IMF.
“RST should preserve the reserve asset characteristics of SDRs,” said IMFC. “We call on the IMF to provide technical assistance in developing and implementing the RST and to cooperate closely with the World Bank in this process and to explore viable alternatives to disseminate the SDR through multilateral development banks.”