IMF's Georgieva urges member countries to act swiftly on debt, inflation

The ​International Monetary Fund ​is urging its ‌member states ​to act swiftly if they see inflation ‌rising and to work on reducing large deficits, IMF Managing Director Kristalina Georgieva said ‌on Monday, noting stubborn inflation fueled by ‌AI investments. Georgieva told a panel at the annual meetings of the IMF and World Bank ⁠in ​Bangkok ⁠that sharp increases in defense spending were also ⁠pushing inflation higher after the energy shock ​of the war in the Middle East, ⁠which in turn was putting pressure on central ⁠banks ​to raise interest rates.

But that had consequences for developing countries ⁠and emerging markets, which she said were now "becoming ⁠victims ⁠of the increase in yields in advanced economies," she said.