IMF Chief Economist: Inflation risks persist, central banks should continue to focus on price stability

On October 13 that Silvana Tenreyro, Chief Economist of the International Monetary Fund (IMF), stated that monetary policy should continue to firmly focus on maintaining price stability as inflation risks persist. She noted that the policy stance of central banks globally needs to remain sufficiently tight to promptly drive inflation back to target levels and prevent second-round inflation effects.

Tenreyro pointed out that the transmission of rising commodity prices to core inflation remains under control, but policymakers must remain vigilant. She stated that if further increases in commodity prices and factors related to technology investment continue to push up inflationary pressures, central banks will need to further tighten monetary policy. Tenreyro added, "The appropriate policy stance will vary by country, but the objective remains consistent: ensuring price stability. Central bank independence remains crucial for achieving this goal." (Jinshi)