MNI: Inflation Is Clear & Present Danger For Central Banks-IMF

Central banks must take decisive action against the most dangerous inflation in many years to make sure price expectations remain under control, even with global growth taking another hit from the Ukraine invasion, IMF chief Kristalina Georgieva said Thursday.

"Inflation has become a clear and present danger for many countries around the world," she said in a curtain-raiser speech for the fund's spring meetings and revised global outlook . "This is a massive setback for the global recovery."

Global growth estimates will be reduced for this year and next following the January cut in the 2022 forecast to 4.4%, Georgieva said in prepared remarks, which also cited drags from Chinese supply bottlenecks and the ongoing pandemic. Russia's invasion means forecast downgrades for 143 economies this year, or 86% percent of global GDP.

"Central banks should act decisively, keeping their finger on the pulse of the economy and adjusting policy appropriately," she said. "There is a rising risk that inflation expectations could become de-anchored, which could make inflation more entrenched and harder to control."