The International Monetary Fund urged central banks to ensure that a financial market rout in the developing world does not lead to an international funding crunch. An IMF spokesman said some emerging market countries need to take urgent action to improve their economies, which are under threat by a recent sell-off in markets from India and Turkey to Brazil.
The International Monetary Fund (IMF) stated on Wednesday that both financial and banking sectors in Latin America “should keep their guards up” before the recent and fast growth of the credit, though the lender doesn’t see any overheat of the region’s economy.
Progress to restore global financial stability has suffered a setback in advanced economies, the International Monetary Fund said in its latest Global Financial Stability Report, with markets still sensitive to negative surprises.
The International Monetary Fund (IMF) has urged developing powers in Asia and Latin America to guard against the kinds of asset bubbles that caused wealthier economies to plunge into recession in the last two years.