The International Monetary and Financial Committee said the global economy has weathered the latest series of shocks better than expected, but that buffers have been eroded and risks remain tilted to the downside, with escalating conflicts and trade tensions able to disrupt trade routes and add to commodity price pressures. The committee named rising sovereign bond yields in systemic economies, together with high public debt and refinancing needs in many countries, as a channel that could amplify financial vulnerabilities, and said fiscal vulnerabilities should be urgently addressed and consolidation efforts advanced under credible medium-term frameworks.
Central banks remain strongly committed to price stability and will adjust policy in a data dependent manner, the statement said, with central bank independence described as essential to credibility. Members also welcomed the Bangkok Blueprint on digital finance safeguards, cyber resilience and digital fraud, reaffirmed their April 2021 exchange rate commitments, and extended the term of the Saudi finance minister, Mohammed Aljadaan, as IMFC chair by one year, with the next meeting set for April 2027 in Washington.