The International Monetary Fund (IMF) released its latest Global Financial Stability Report (GFSR) on Tuesday, which states that the world economy is experiencing stubbornly high inflation not seen in decades.

The report adds that global financial stability risks have increased since the April 2022 GFSR, and suggests that the balance of risks is skewed to the downside, while financial conditions continue to tighten globally.

"Amid the highest inflation in decades and extraordinary uncertainty about the outlook, markets have been extremely volatile," the report asserts.