Ukraine war to test resiliency of global financial stability and raise risks: IMF – The National

Ukraine war to test resiliency of global financial stability and raise risks: IMF – The National

The Russia-Ukraine war will test the resilience of the global financial system, posing a threat to financial stability and confronting policymakers with challenging trade-offs, the International Monetary Fund said.

Policymakers need to take "decisive" action to rein in rising inflation and preserve the economic recovery from the Covid-19 pandemic while avoiding a "disorderly" tightening of global financial conditions, the fund said in its latest Global Financial Stability Report on Tuesday.

"The war in Ukraine, while at this point not a global systemic event from a financial standpoint, is nonetheless anticipated to have a material impact on the economy amid heightened uncertainty about the outlook," the Washington-based lender said.