Global financial stability risks still on the rise, says IMF
Organisation cuts expectations for global growth to lowest level since 2016
Washington — Risks to the global financial system have grown over the past six months and could increase with a messy British exit from the EU or an escalation of US-China trade tensions, the International Monetary Fund (IMF) says. The IMF, whose spring meetings with the World Bank begin in Washington this week, noted that the global economic expansion is slowing, and an abrupt downturn could have a far-reaching impact. The fund also warned against rolling back prudential regulations that could help to buffer the financial system in the event of a downturn. “There is a risk that positive investor sentiment could deteriorate abruptly, leading to a sharp tightening of financial conditions,” the IMF said in its Global Financial Stability Report. “This will have a larger effect on economies with weaker fundamentals, greater financial vulnerabilities, and less policy space to respond to shocks.” On Tuesday, the IMF cut its expectations for global growth to its lowest level since 2016. I...
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