‘It’s not done’: IMF head warns of costs in finally overcoming inflation

The IMF managing general, Georgieva Kristalina, described the war in Ukraine as a ‘big black cloud hanging over the world economy’. Photograph: The Washington Post/Getty Images

The head of the International Monetary Fund has warned that victory in the fight against inflation could spell trouble for financial markets by forcing central banks to keep interest rates high until 2025.

In a Guardian interview before next week’s IMF annual meeting in Marrakech, Kristalina Georgieva said there was a risk of borrowing costs staying high for a protracted period, with knock-on effects for asset prices.