IMF considers that uncertainty due to the banking crisis remains “high”

The International Monetary Fund (IMF) considered this Thursday, March 23, that uncertainty due to the banking crisis continues to be “high”, which justifies “continuous surveillance” after the bankruptcy of two banks in the United States, the rescue of a third and Credit Suisse’s problems in Europe. He announced that he will make a more detailed evaluation of the current situation and its repercussions in the reports it will publish in April on the world economic outlook and global financial stability.

The IMF spokeswoman, Julie Kozack, highlighted in a press conference that they have reacted “quickly” to the risks to financial stability, and recalled that the main central banks have taken coordinated actions to “improve” the provision of liquidity in US dollars.

“These actions have eased the market tension to some extent. At the same time, uncertainty remains high and continued vigilance is needed.”, he pointed. He added that the IMF is monitoring developments “closely” and is evaluating the implications that this situation may have on global financial stability.

It should be remembered that the IMF and the World Bank (WB) plan to hold their Spring Assembly from April 10 to 16.

Repercussions after the rise in the interest rate of the Fed

Wall Street began the day this Thursday in mixed territory and the Dow Jones Industrials, its main indicator, added 0.62%. This, after the rises in interest rates from several central banks.

Investors evaluate the latest movement of the Federal Reserve (FED) of the United States to raise rates by a quarter of a point (0.25%) and analyze what could be the next movements of the Central Bank.

The day before, the president of the Fed, Jerome Powell, anticipated that, as a consequence of the recent banking crisis, interest rate increases may not be adequate to contain inflation in the United States.

What happened on March 22 was the ninth increase in rates in a year to combat inflation, although it was less than anticipated by the Fed, which had talked about accelerating the rate of increases when the banking crisis had not yet erupted.