IMF, director Georgieva: “Inflation is a tax on the weakest”

“I believe there is a lot that can be done to address the cost of living with monetary policy tools,” he said

Inflation is a tax for the weakest and without price stability the economy is put at risk. Without too many words, Kristalina Georgieva, director of the International Monetary Fund, goes straight to the point. “The world economy has been hit by one shock after another. Uncertainty remains exceptionally high: there is a 25% chance that world growth will drop below 2% next year, “added Georgieva.

Strong action is needed

“Fiscal and monetary policy – explained Georgieva – must go hand in hand: when monetary policy puts a brake on it, fiscal policy must not press on the accelerator. We need decisive action against the cost of living. Not acting strongly would cause even more problems ”. Meanwhile, the core US consumer price index, net of energy and food and monitored by the Fed, jumped in September to the highest of the last 40 years, rising 0.6% on a monthly basis, above analysts’ expectations. On an annual basis, the increase was 6.6%.

It’s “government bonds” alarm

The tension after the US inflation figure, which may lead to the continuation of monetary tightening by the Fed and other central banks, in addition to the stock exchanges also affects government bonds: the spread between BTPs and Bunds is 244 basis points , but above all the yield on Treasury product rose to 4.82%, close to the highest level since 2013. The recent level of the 10-year BTP rate, the absolute highest in the last nine years, was touched during the session of the September 28, to a high of 4.88%.