IMF says the world economy is clearly moving into the middle ‘adverse scenario’ with higher oil prices but medium-term inflation expectations remain anchored

• Welcomes dialogue between Trump/Xi, and important for US and China to engage at the highest levels.

The IMF's statement about the global economy entering a more adverse scenario could impact market sentiment, particularly regarding risk assets and commodities like oil, as rising prices might strain economic recovery. Importantly, the note on anchored medium-term inflation expectations suggests a balance that could influence central banking policies, particularly in the context of the ongoing dialogue between the US and China, which is crucial for global trade dynamics.