In a note for G20 Finance Ministers and Central Bank Governors’ Meetings later in the week, IMF said that “global growth has progressed broadly in line with projections, with clear signs of divergence.”. It urged “immediate action” by G20 to “arrest the rising human and economic toll of the pandemic”.
Additionally, IMF said policy support should be “tailored to the stage of the crisis, avoiding abrupt transitions.” Monetary policy should “remain accomodative in most economies”. In particular, where “inflation expectations are anchored, ” continued monetary accommodation is warranted”.
However, in economies “furthest ahead in the recovery”, “communicated policy intentions will keep inflation expectations well-anchored and avoid adverse spillovers to weaker economies.” “Where inflationary pressures are high and expectations not firmly anchored, monetary policy should tighten.”