Kwarteng has taken a low profile at the first IMF and World Bank in-person meetings in more than three years, and was not present at a G20 finance ministers and central bank governors meeting on Thursday, according to British media reports. And right now, the evidence points to the need for governments to keep up their fight against inflation, even though doing so increases the risk of a global recession. The IMF chief said that any recalibration of policies should be led by evidence.
“Our message to everybody, not just to the UK, at this time: fiscal policy should not undermine monetary policy because, if it does, the task of monetary policy only becomes harder and it translates into the necessity of even further increases of rates and tightening of financial conditions,” Georgieva said. Georgieva told a news conference that she discussed with British finance minister Kwasi Kwarteng and Bank of England Governor Andrew Bailey the need for “policy coherence and communicating clearly … so in this jittery environment there would be no reasons for more jitters.” Her comments during the IMF and World Bank annual meetings in Washington highlighted concerns about financial market turmoil triggered by Britain’s proposed “mini-budget” of increased spending and tax cuts that were threatening to overshadow bigger economic challenges, such as the fight against inflation and the impact of the war in Ukraine. WASHINGTON -International Monetary Fund Managing Director Kristalina Georgieva on Thursday rebuked the British government over its planned tax cuts, telling its finance minister and central bank chief that their policies should not be contradictory.
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