War forcing central banks into ‘delicate balancing act’, says IMF

Tobias Adrian
Tobias Adrian
Photo: John Harrington

Russia’s invasion of Ukraine has forced central banks into a “delicate balancing act” that raises the risk of dysfunction in financial markets, the International Monetary Fund warns.

“Central banks face heightened challenges in credibly bringing inflation to target while safeguarding economic recovery,” the IMF says in its latest Global Financial Stability Report, published today (April 19).

The fund says the war has amplified financial stability risks “along several dimensions”. An escalation

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