IMF Chief Economist: Inflation Risks Persist, Central Banks Should Stay Focused on Price Stability

PANews, October 13 - Silvana Tenreyro, Chief Economist of the International Monetary Fund (IMF), stated that with inflation risks still present, monetary policy should continue to firmly focus on maintaining price stability. She noted that central banks' policy stances need to remain sufficiently tight to promptly bring inflation back to target levels and prevent second-round inflation effects. Tenreyro pointed out that the pass-through of rising commodity prices to core inflation remains contained for now, but policymakers still need to stay vigilant. She said that if commodity price increases and factors related to tech investment further fuel inflationary pressures, central banks would need to tighten monetary policy further. Tenreyro stated, "The appropriate policy stance may vary across countries, but the goal is the same: ensuring price stability. Central bank independence remains crucial to achieving this goal."