Nicely timed comments ahead of tomorrow’s ECB meeting. It will make euro longs nervous but the IMF has been calling for stronger action from the ECB for years.
Other comments from the IMF leader:
- Global growth was about 3% last year, expects modest improvements this year and next
- Global economic recovery weak and slow
- Sees risk of heightened market volatility due to taper of Fed’s monetary easing
- Needs cooperation among central banks to contain spillovers
- Without ambitious policy risks rise of a low-growth trap
