Medium-term growth prospects remain weak, International Monetary Fund Managing Director Kristalina Georgieva said at the third meeting of the G20 Finance Ministers and Central Bank Governors in Gandhinagar, India.
Inflation could remain higher for longer, requiring even more monetary policy tightening, she said.
According to her, elevated food and fertilizer prices are particularly worrying.
"The top priority is to durably bring inflation down. While there is progress, the job is not yet done—monetary policy must stay the course. A premature celebration can reverse the hard-won gains made so far in the disinflation process," Georgieva said.
She called on G20 countries to rebuild fiscal buffers to support disinflation and more comfortable debt servicing, as well as to implement reforms aimed at stimulating economic growth.