IMF raises alarm about ‘storm clouds’ over world economy

The First Deputy Managing Director of the International Monetary Fund, IMF, David Lipton, Tuesday, warned that `storm clouds’ were gathering over the global economy.

According to Lipton, who said governments and central banks might not be well equipped to cope, the fund had been urging governments to “fix the roof” during a sunny last two years for the world economy.

“But like many of you, I see storm clouds building, and fear the work on crisis prevention is incomplete,” he said.

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Lipton, who spoke at at banking conference hosted by Bloomberg, also warned that strains could leave policymakers under pressure and in uncharted water.

“Central banks would likely end up exploring ever more unconventional measures.

“But with their effectiveness uncertain, we ought to be concerned about the potency of monetary policy”, he said.

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