Acting IMF chief backs monetary easing by central banks in view of slow growth and global risks
David Lipton, the acting IMF chief, has backed new monetary stimulus by the world’s top central banks to sustain the flagging global economy — in a thinly veiled nod to the US Federal Reserve and the European Central Bank as they consider easing policy.
In an interview with the Financial Times as G7 finance ministers and central bankers prepare to meet this week in France, Mr Lipton said that “in light of sluggish growth and downside risks, it makes sense for monetary policy in the major central banks to remain accommodative”.
The IMF in April downgraded its forecast for global growth this year to 3.3 per cent, but predicted a rebound to 3.6 per cent in 2020. “We see some acceleration next year but that presupposes a few very important things, including that trade tensions continue to be resolved rather than intensify, and that a number of countries that had extreme stress recover somewhat,” Mr Lipton said, referring to Argentina, Venezuela, Turkey and Iran.
Via Financial Times