IMF Urges Central Banks to Focus on Inflation Amidst Risks from Bank Crisis and Weak Global Growth.

The IMF has stated that the risks from the recent bank crisis appear to be contained for now, and that inflation is the bigger risk and top concern for central bankers and attendees of the IMF/World Bank spring meetings this week in Washington. The IMF warns that the risks of tighter monetary and financial conditions could be amplified because of financial leverage, mismatches in asset and liability liquidity, and a high degree of interconnectedness between the nonbank financial intermediation sector and traditional banking institutions.