International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that G7 finance leaders need to prepare for the prospect of multiple potential inflationary shocks, reported Reuters on Thursday. Costs are being driven higher by the war in Ukraine and China's zero-Covid-19 policy, she added. It is getting harder for central banks to bring down inflation without causing a recession, Georgieva added.
"I think what we need to start getting more comfortable with is, that may not be the last shock," Georgieva said on the sidelines of this week's G7 meeting to Reuters.
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