Central bankers, gathered in Peru for the International Monetary Fund’s annual meeting, urged the Federal Reserve to stop dithering raise interest rates.
Deputy Governor of Bank Negara Malaysia Sukhdave Singh said deferring the rate hike won’t solve the situation as there will be a day of reckoning in the event the emerging markets have taken on too much debt.
Also, German Bundesbank President Jens Weidmann mentioned there was no reason to delay a rate increase, indicating emerging markets being affected by a Fed-induced capital outflow is no reason.
The US central bank’s officials have previously said they are proceeding cautiously and relying their decision on the vitality of the American economy.
The material has been provided by InstaForex Company – www.instaforex.com