IMF spring meeting take-aways: short-term resilience, but no reacceleration in the mid term

The IMF outlook highlights the remarkable resilience in growth and declining inflation in most countries. However, the medium-term outlook remains subdued when compared to the pre-pandemic growth average. Although inflation is softening, its reduction remains a priority and central banks need to calibrate monetary policy at a country level. The tremendous optimism in financial markets based on the soft-landing narrative presents challenges: inflation persistence, compressed volatility and high correlation across
assets with elevated fundamental uncertainty.