Twin threats of rising rates and deglobalisation leave IMF spooked

International banks tower over pedestrians at Canary Wharf, London. The collapse Silicon Valley Bank and the bailout of Credit Suisse have spooked the IMF. Photograph: Andy Rain/EPA

The collapse of Silicon Valley Bank in the US and the bailout of Credit Suisse in Switzerland have spooked the International Monetary Fund, denting its hopes that 2023 would see an end to the series of setbacks that have afflicted the global economy since Covid-19 was declared a pandemic about three years ago.

It’s fair to say the IMF wasn’t exactly super-optimistic about the prospects for the world economy even before SVB and CS conjured up unpleasant memories of the 2008 financial crisis.