International Monetary Fund (IMF) Managing Director Kristalina Georgieva said both banking and non-banking financial systems are in a vulnerable position due to attempts by global central banks to curb inflation.
Among the consequences, she especially pointed the finger at financial instability and a slowdown in economic growth, while dismissing the threat of a repetition of a financial crisis on the scale of that which occurred in 2008.
“In fact, we’ve been saying for a year, ‘It’s not possible that interest rates would have risen so much after being low for so long, and there wouldn’t be any vulnerabilities, something has to do a’ boom’,” she added. She is in conversation with a journalist, the conversation was published on the IMF’s YouTube channel.
Earlier, Kristalina Georgieva said that the global economy is far from stable and is in a turbulent zone. In his opinion, the situation is now aggravated due to the ongoing Ukrainian crisis. According to IMF forecasts, in 2023 GDP growth will be less than 3%.
IMF chief said about the vulnerability of the global economy first appeared on news articles.
