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, reported Reuters. 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.
