IMF warns of potential house price corrections and calls for tight monetary and fiscal policies in Europe.

The IMF has warned of "disorderly" house price corrections in Europe as central banks increase interest rates further. The Fund said that a downward correction is already underway in some European housing markets, but this decline could accelerate. Mortgage payments might go up as well, as central banks increase interest rates in efforts to reduce inflation levels. The IMF expects headline inflation to average 5.3% in the euro zone this year and 2.9% next year — above the European Central Bank's target of 2%.