IMF: Policymakers need to be ready to take decisive actions to maintain price stability

Eren Sengezer FXStreet

Citing a draft document, Reuters reported the International Monetary Fund (IMF) will say in its communique that inflation dynamics require close monitoring and policymakers need to be ready to take decisive actions to maintain price stability.

Additional takeaways

"Inflation surge still assessed as driven by temporary factors such as supply chain disruptions, higher commodity prices."

"Inflation now appears less transitory than previously expected, upside risks to inflation increasing."

"Steps need to be taken to make supply chains more resilient in the future, accelerate the adoption of new and green technologies."

"Delicate balancing act needed to underpin recovery, restore macroeconomic stability."

"New resilence and sustainability trust should not depart from existing IMF model, sees less scope for channelling SDR reserve through multilateral development banks."

"Need to build confidence in G20 common framework on debt restructuring among creditors and borrowers."

Market reaction

The market mood remains upbeat following these remarks with US stock index futures rising around 1% minutes ahead of Wall Street's opening bell.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD rises to 1.1800 neighborhood amid renewed USD selling and trade uncertainties

The EUR/USD pair regains positive traction during the Asian session on Wednesday and jumps to the 1.1800 neighborhood in the last hour, reversing the previous day's modest losses. The intraday move up is sponsored by the emergence of fresh US Dollar, which continues to be weighed down by persistent trade-related uncertainties.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold stays firm above $5,150 as Trump's delivers State of the Union speech

Gold finds fresh demand and regains the $5,150 level following the previous day's pullback from the monthly peak as traders assess Trump's State of the Union address. Trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.