IMF Chief Economist Warns of Precarious Global Financial Risks.

The International Monetary Fund's chief economist has warned that banks' response to increased interest rates presents a significant risk to global growth. Central bank hikes have increased funding costs for banks, while lenders have also seen some losses in assets like long-term bonds. The IMF sees funding conditions for banks tightening further and squeezing lending, bringing its forecast of 2.8% global growth in 2023 down to 2.5%. The IMF on Tuesday released its latest global growth report, which contained its weakest medium-term growth expectations for more than 30 years.