Central Banks

IMF Chief Warns Hasty Central-Bank Action Could Suffocate Growth

IMF Managing Director Kristalina Georgieva speaks ahead of the IMF and World Bank Spring meetings at the IMF headquarters in Washington. — IMF Managing Director Kristalina Georgieva speaks ahead of the IMF and World Bank Spring meetings at the IMF headquarters in Washington.
Photographer: Daniel Heuer/Bloomberg

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By Jorgelina Do Rosario and Francine Lacqua

April 15, 2026 at 4:03 PM UTC

Updated on

April 15, 2026 at 4:47 PM UTC

Central banks should resist the urge to hike interest rates in response to the Middle East crisis as this could damage economic output, according to International Monetary Fund Managing Director Kristalina Georgieva.

Given that long-term inflation expectations are well anchored and haven’t budged, “it is important that the central banks act carefully,” she told Bloomberg Television. “Those that are in a good position of credibility, they can take a wait-and-see attitude. They also have to signal ‘we are prepared to act if necessary.’”