IMF chief economist sees inflationary pressures, risks from Omicron

Gita Gopinath says a more transmissible SARS-CoV-2 variant such as Omicron could cost the global economy a further $5.3 trn, in addition to the current projected loss of $12.5 trn

Central banks do not have the space to keep monetary policy loose and interest rates low, the International Monetary Fund's chief economist said on Thursday, also warning that the pandemic could turn out far more costly than estimated.

Gita Gopinath, IMF chief economist, said that it had estimated that a more transmissible SARS-CoV-2 variant such as Omicron could cost the global economy a further $5.3 trillion, in addition to the current projected loss of $12.5 trillion.

She was speaking to an event organised by the World Health Organization (WHO) which seeks $23.4 billion for vaccines and other tools against the