FXStreet (Mumbai) – Speaking at the International Monetary Fund’s (IMF) annual meeting, the fund’s Managing Director Christine Lagarde said that prolonged low-interest rates regime in the advanced economies could lead to greater financial risks and hence she urged those economies to cooperate to develop a safety net to counter the risks to financial stability.
Key Quotes:
“An extended period of monetary accommodation in advanced economies has led to pockets of financial vulnerabilities,”
“Safeguarding financial stability while promoting real investment remains a major policy challenge.”
“Cooperation is vital in areas such as the global financial safety net, trade, climate change, international taxation, sustainable development goals, and demographic transitions and migration.”
On China, she noted, “To only grow at 6.8 and next year at 6.3, with a growth model that is no longer based on either massive export relative to domestic massive investment projects as opposed to consumption is a good transition, but it is a massive exercise.”
(Market News Provided by FXstreet)