IMF Urges Caution on Inflation and Financial Stability

According to BlockBeats, the International Monetary Fund (IMF) has advised central banks to remain vigilant against inflation risks driven by tariffs and to adopt a cautious stance on monetary easing to prevent further surges in high-risk asset valuations. The IMF emphasized the critical importance of central bank independence in stabilizing market expectations and enabling these institutions to fulfill their duties, though it did not specify any particular institutions. The IMF also called for "urgent fiscal adjustments" to curb deficits and ensure the resilience of bond markets. It highlighted the growing connections between banks and the less regulated non-bank financial sector, warning that this could amplify shocks in areas like private credit or cryptocurrencies. The organization urged policymakers to adopt a more comprehensive approach to assess these hidden risks, particularly concerning risk transmission between banks and non-banks.