WASHINGTON/NEW YORK, Oct 11 (Reuters) - The International Monetary Fund warned on Tuesday of a disorderly repricing in markets, saying global financial stability risks have increased, raising the risks of contagion and spillovers of stress between markets.
"We have to go back decades to see so much conflict in the world, and at the same time inflation is extremely high."
Register now for FREE unlimited access to Reuters.com RegisterThe combination of high inflation with central bank policy uncertainty "creates this environment of really high risk and volatility," he said.
In its latest Global Financial Stability Report, the IMF warned that global financial stability risks had increased since the April 2022 edition, leaving the balance of risks "significantly skewed" to the downside.
"In particular, volatility and a sudden tightening in financial conditions could interact with, and be amplified by, preexisting financial vulnerabilities."