Global Economy

IMF urges central banks to stay on interest hike trajectory, despite lift in global outlook

US Fed and ECB are poised to raise interest rates further this week

The International Monetary Fund estimates risks have eased in recent months after the US averted a default and authorities staved off a banking crisis on both sides of the Atlantic. Picture: Getty

• International Monetary Fund raised outlook for global economy after US avoided a default and American and Swiss banks stabilised

• Fund sees inflation slowing to 6.8 per cent this year — compared with a 7 per cent forecast in April — but expects core inflation to cool at a slower rate than expected

• IMF left global growth expectation for next year unchanged at 3 per cent

The International Monetary Fund (IMF) raised its ...