A weekend report in the Financial Times on comments from David Lipton, the first deputy managing director of the IMF

  • "The next recession is somewhere over the horizon, and we are less prepared to deal with that than we should be . . . [and] less prepared than in the last [crisis in 2008]"

On China:

  • "China is clearly slowing down - we think China's growth has to slow, but keeping it from slowing in a dangerous way is an important objective"
  • … a downshift would be "material very broadly, not just in Asia."

Those comments on China a warning bell for China-proxy trades such as the AUD.

FT link (may be gated)


The IMF will release updated official forecasts later this month, Lipton pre-empting these with the comments