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IMF's Lagarde: Bold policies needed to prop up global recovery

FXStreet (Łódź) - IMF head Christine Lagarde urged politicians and policymakers to do all they can to boost growth and employment in their countries to prevent the global economy from slipping once again into crisis.

"The continued weakness of investment and economic activity—six years after the global crisis—suggests that bolder policies and more decisive execution are needed to generate balanced, sustainably higher, job-rich, and inclusive growth," she stressed.

Speaking to reporters in Washington on Thursday ahead of this week's IMF and World Bank meeting Lagarde called for more central bank action. She welcomed ECB's latest moves but stressed it should implement additional measures if inflation fell further. BoJ should ease its monetary policy as soon as inflation climbs again, while the Fed and the BoE devise suitable exit strategies.

Finally, the IMF managing director pointed to the ongoing tensions in the Middle East, the Ukrainian-Russian conflict as well as the Ebola epidemic in West Africa as factors threatening the global recovery.

"While the impact of the conflict in Ukraine has been relatively contained to date, further escalation could generate significant negative spillovers, both regionally and globally," she warned. "These would include disruptions in commodity prices, higher risk aversion in financial markets, and erosion of business confidence in trading partners."

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