IMF Chief Warns Iran War Could Force Central Banks to Raise Interest Rates

IMF Managing Director Kristalina Georgieva urged central banks to prioritize inflation control even at the cost of weaker growth, warning that rate hikes may be necessary if inflation expectations threaten to break anchor. Oil supply disruptions from the Hormuz blockade have triggered extreme price volatility. Rate cuts are now on hold in the US, with potential hikes expected from the ECB, Bank of England, and possibly the Bank of Japan. The IMF's updated global forecasts are scheduled for release April 14.