IMF managing director calls on major central banks to continue support for weak economies

24.08.2013 12:42
IMF managing director calls on major central banks to continue support for weak economies

YEREVAN, August 24, /ARKA/. The head of the International Monetary Fund (IMF) cautioned the world’s major central banks Friday not to withdraw their unconventional support for weak economies too soon, RBC reported. IMF managing director Christine Lagarde said simulative policies are still needed in key regions, especially Europe and Japan, which have struggled with prolonged weakness.

She spoke at an annual economics conference in Jackson Hole, Wyo., USA, sponsored by the Kansas City Federal Reserve Bank.

Lagarde said central banks must carefully develop strategies for scaling back their efforts to keep borrowing rates low. Any pullback should be determined by the strength of individual economies, she said.

‘Unconventional monetary policy is still needed in all places it is being used, albeit longer for some than for others,’ Lagarde said in her speech to the conference. She said finance officials should prepare contingency plans in case market turbulence worsens.

In her speech, Lagarde said the support being provided by major central banks is buying time for nations to implement key economic reforms.

‘Push ahead with deeper reforms to lay the foundation for durable and lasting growth,’ Lagarde said. -0-


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