Central banks are taking tough action to bring down stubbornly high inflation but ever-higher interest rates put pressure on financial institutions that had become accustomed to rock-bottom interest rates. Although inflation is proving stickier than expected, the IMF says it sees no sign of a wage-price spiral. As a result, the IMF is concerned that growth could be even weaker this year and next than it expects. Having been caught out badly in the run-up to the global financial crisis, the IMF is eager not to make the same mistake twice. In part this slowdown has been caused by an anticipated moderation in growth rates posted by China and South Korea.

Source: The Guardian April 12, 2023 02:12 UTC