IMF: Central Banks Must Exercise Caution with Monetary Easing, Calls for Urgent Fiscal Adjustment

BlockBeats News, October 14th, the IMF stated that central banks around the world should remain vigilant against tariff-driven inflation risks and adopt a cautious stance on monetary easing to minimize further surge in high-risk asset valuations. The IMF added that central bank independence is "crucial" for stabilizing market expectations and enabling these institutions to fulfill their duties, but did not mention specific institutions. The IMF also called for "emergency fiscal adjustments" to curb deficits and ensure resilience in the bond market.

The IMF stated that the relationship between banks and the more loosely regulated non-bank financial sector is becoming increasingly interconnected, which will exacerbate the impact in areas such as private credit or cryptocurrency. The institution urged policymakers to take a more comprehensive approach to assess these hidden risks, especially concerning risk transmission between banks and non-banks. (Jinse)