-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI:Inflation Must Be Tamed Even If Recession Is The Price-IMF
Lost output from shocks is equal to size of German economy
Global policy makers must keep the fight to bring down inflation as their top priority, with central banks acting "decisively" and governments avoiding "indiscriminate" stimulus, IMF chief Kristalina Georgieva said Thursday, adding that stance means a fourth downgrade to global forecasts and leaves many economies on the brink of recession.
The fund's updated forecast outlook next week will cut the 2023 growth forecast from 2.9%, she said in the text of a "curtain raiser" speech for semi-annual IMF meetings.
"Countries accounting for about one-third of the world economy will experience at least two consecutive quarters of contraction this or next year," Georgieva said. "Even when growth is positive, it will feel like a recession because of shrinking real incomes and rising prices."
Lost output due to shocks such as the Ukraine war and Covid will amount to USD4 trillion through 2026, about equal to the size of Germany's economy, the IMF estimates. Rising financial instability related to sovereign debt and capital flows add to downside risks. Avoiding the pain involved with slowing inflation will only lead to even greater distress in the future, Georgieva said.
"Inflation has remained stubbornly high and broad-based -- which means that central banks have to continue to respond," she said. "In the current environment, this is the right thing to do: act decisively even as the economy inevitably slows."
The Fed must keep hiking rates to 5% after lagging the inflation surge, ex-Fed visiting scholar Michael Bordo has told MNI. (See: MNI INTERVIEW: Fed Needs To Hike To At Least 5%- Bordo) Global bond yields have jumped this year as investors see central banks pressing ahead even amid signs growth is slowing.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.