The Pak Banker - - FRONT PAGE - Ane­mic growth war­rants easy mon­e­tary pol­icy: La­garde

ROME: Ac­com­moda­tive mon­e­tary pol­icy will re­main nec­es­sary for as long as global growth re­mains weak, IMF man­ag­ing di­rec­tor Chris­tine La­garde said in an ar­ti­cle pub­lished to­day. With the global econ­omy in a frag­ile state, cen­tral banks from Europe to China have cut in­ter­est rates in 2014, and the pos­si­bil­ity of print­ing money to buy gov­ern­ment bonds looms large in some places. "Ac­com­moda­tive mon­e­tary pol­icy will con­tinue to be nec­es­sary while growth re­mains ane­mic, although we must pay very close at­ten­tion to the risk of po­ten­tial spillover," La­garde wrote in an opin­ion piece for Ital­ian business daily. Six years after the 2008 fi­nan­cial cri­sis, the global econ­omy risks fall­ing into a pro­longed pe­riod of slow growth and scant job cre­ation, La­garde said, call­ing for fresh po­lit­i­cal im­pe­tus to ac­ti­vate mea­sures agreed by G20 coun­tries last month.

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