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IMF chief warns there will be ‘people on the street’ globally unless steps are taken to reduce inflation

“It’s important to think that the combined impact of multiple crises is testing people’s patience and resilience. And if you don’t act to support the most vulnerable, it will. There are consequences,” she said CNN’s Christiane Amanpour.

“If we don’t bring down inflation, this will hurt the most vulnerable, because a boom in food and energy prices is inconvenient for the well-off – for the well-off. poor people, that’s a tragedy, so we think of the poor first when Georgieva speaks.

Central banks around the world “have no choice” but to raise interest rates in an attempt to combat inflation, she added.

“Fiscal policy, if it generously helps people, will actually hinder monetary policy, it will be the enemy of monetary policy, because you increase demand and that drives up prices.” , and then have to tighten it,” said the head of the IMF. “The key question facing us is to restore the conditions for growth, and price stability is an important condition,” she added.

The events that drove prices up – mainly the Omicron variant of Covid-19 and Russia’s invasion of Ukraine – have “made inflation today our greatest enemy,” the IMF chief told Amanpour. “.

“This year is difficult, next year is harder. Why? Because one shock when shock when shock. In just three short years: pandemic (not over), war, Russian invasion pushed up the price of energy and food, and then the result was a cost of living crisis,” she told CNN.

When asked about the surge in support for far-right candidates in Italy and Sweden, Georgieva said she “isn’t surprised to see people get angry. They’ve been locked in their homes for months. They’ve seen prices go up. And this is why my call to policymakers is ‘consider.’ ”

“If we can’t protect our sense of survival and our sense of solidarity, this is what will happen,” she warned. There will be “people on the street” globally unless steps are taken to protect the most vulnerable from inflation.

The IMF chief told Amanpour that the events that drove prices up – mainly the Omicron variant of Covid-19 and Russia’s invasion of Ukraine – have “made inflation today our greatest enemy”. .”

“If we can’t protect our sense of survival and our sense of solidarity, this is what will happen,” she warned.

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