IMF boss warns on inflation shocks

IMF Managing Director Kristalina Georgieva. [AP] 

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that global finance leaders may need to become more comfortable with fighting multiple bouts of inflationary pressures.

Ms Georgieva told Reuters that it was getting harder for central banks to bring down inflation without causing recessions, due to mounting pressures on energy and food prices from Russia’s war in Ukraine, China’s zero-Covid policies that have slashed manufacturing with lockdowns, and the need to reorder supply chains to make them more resilient.