IMF boss Lagarde warns economy ‘too weak for comfort’

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http://www.bbc.com/news/business-26861903

The global economy could be heading for years of “sub-par growth”, according to the head of the International Monetary Fund (IMF).

Christine Lagarde warned that without “brave action” the world could fall into a “low growth trap”.

She said the global economy would grow by more than 3% this year and next, but that market volatility and tensions in Ukraine posed risks.

Ms Lagarde also urged more action to tackle low inflation in the eurozone.

She called on the European Central Bank (ECB) to pursue “more monetary easing, including through unconventional measures”.

The global economy could be heading for years of “sub-par growth”, according to the head of the International Monetary Fund (IMF).

Christine Lagarde warned that without “brave action” the world could fall into a “low growth trap”.

She said the global economy would grow by more than 3% this year and next, but that market volatility and tensions in Ukraine posed risks.

Ms Lagarde also urged more action to tackle low inflation in the eurozone.

She called on the European Central Bank (ECB) to pursue “more monetary easing, including through unconventional measures”.

The IMF’s managing director said that global economic signs were positive overall, but that “without sufficient policy ambition, the world could fall into a medium-term low-growth trap”.

She called for governments to reform labour markets to encourage job creation, and for more public investment such as transport and communications networks in rich and emerging countries.

In a speech seen as a precursor to the IMF’s spring meetings in Washington next week, Ms Lagarde specifically referred to the US Federal Reserve’s gradual winding down of monetary stimulus.

The US central bank is slowly reducing the rate at which it buys bonds, which has been pumping money into the country’s economy.

But it has had a damaging impact on emerging markets, as investors withdrew money back to the US in the hope of achieving higher interest rates.

———-

“without “brave action””

brave..please..your not fucking brave..thats the last thing you bankers are..

is she blowing us a kiss? :)

” pursue “more monetary easing, including through unconventional measures”.”

you need to worry when you see the word “unconventional” used..

401

~ by seeker401 on April 6, 2014.

One Response to “IMF boss Lagarde warns economy ‘too weak for comfort’”

  1. Reblogged this on SherayxWeblog.

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