IMF Chief Economist Warns of Potential Central Bank Tightening Amid Prolonged Middle East War
The IMF's chief economist, Pierre-Olivier Gourinchas, warned that central banks may need to implement more aggressive monetary tightening to control inflation driven by a prolonged Middle East war, which could lead to significant economic pain. The IMF has lowered its 2026 global growth forecast to 3.1%, with further reductions in scenarios of extended conflict and higher oil prices.
Topics: Central Banks IMF Outlook Inflation Middle East War Monetary Policy