IMF’s Georgieva: Additional monetary stimulus may pose risks to financial stability

Dhwani Mehta FXStreet

International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned against the additional monetary stimulus, citing that it would pose important risks to financial stability while speaking at an event discussing the consequences of "lower for longer" interest rates around the world.

Key quotes

"Now, many central banks are going back to the lab, reviewing their frameworks to identify innovative strategies and tools that will support the recovery from this crisis and beyond.”

"While new frameworks and tools may speed recovery, the additional monetary stimulus may pose important risks to financial stability."

“Easier financial conditions could encourage excessive risk-taking.”

"Monetary policymakers will need to balance a short-term boost to inflation and output against a buildup of macro-financial vulnerabilities."

“Fiscal policy to play a significant role in the post-pandemic recovery.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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