Turkish central bank needs to be ‘fully independent,’ IMF’s Europe director says

Economic and political developments in Turkey have had investors worried for more than a year now. One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession. “So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be f


Economic and political developments in Turkey have had investors worried for more than a year now. One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession. “So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be f
Turkish central bank needs to be ‘fully independent,’ IMF’s Europe director says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: natasha turak, chris mcgrath, getty images
Keywords: news, cnbc, companies, fully, director, central, bank, europe, number, turkish, needs, independence, challenges, monetary, imfs, independent, policy


Turkish central bank needs to be 'fully independent,' IMF's Europe director says

Economic and political developments in Turkey have had investors worried for more than a year now.

One of the country’s most immediate needs if it wants to get its house in order is to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland and Ukraine during the Great Recession.

“Turkey faces a number of challenges, and one of them is that the central bank needs to be fully independent so it can continuously assess and tighten policies as circumstances change in a forward-looking manner,” Poul Thomsen, director of the International Monetary Fund’s Europe department, told CNBC’s Joumanna Bercetche during the IMF Spring Meetings in Washington, D.C. over the weekend.

“So we welcome the increase we’ve seen in interest rates in the last six to seven months, but it’s important that the Turkish central bank be allowed to be fully independent in its assessment of monetary policy in addition to a number of other challenges on fiscal policy, and more transparency.”

Turkey’s economy is already in recession, rocked last year after fears over government interference into central bank independence, over-leveraged banks, a large current account deficit and a diplomatic spat with the U.S. triggered investor and capital flight. The lira lost 36 percent of its value against the dollar by the end of 2018.


Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: natasha turak, chris mcgrath, getty images
Keywords: news, cnbc, companies, fully, director, central, bank, europe, number, turkish, needs, independence, challenges, monetary, imfs, independent, policy


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Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed


Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed
Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


Cryptocurrencies are 'clearly shaking the system,' IMF's Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund.

Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents.

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system,” she said.

The IMF boss warned that such financial industry changes must be accompanied by regulation.

“We don’t want innovation that would shake the system so much that we would lose the stability that is needed,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


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Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed


Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed
Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


Cryptocurrencies are 'clearly shaking the system,' IMF's Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund.

Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents.

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system,” she said.

The IMF boss warned that such financial industry changes must be accompanied by regulation.

“We don’t want innovation that would shake the system so much that we would lose the stability that is needed,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


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IMF’s Lipton warns that volatility hasn’t left markets yet

The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear. Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises. Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulu


The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear. Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises. Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulu
IMF’s Lipton warns that volatility hasn’t left markets yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: david reid
Keywords: news, cnbc, companies, left, volatility, imfs, world, led, central, lipton, washington, interest, warns, investors, markets, banks, rate


IMF's Lipton warns that volatility hasn't left markets yet

The IMF’s David Lipton has told CNBC that the current swing to a dovish tone from global central banks should not lead investors to believe that market volatility will just disappear.

Markets sold off heavily towards the end of 2018, spooked by the U.S.-Sino trade spat and the suggestion that the Federal Reserve was set to press ahead with interest rate rises.

Sluggish data and tepid inflation in 2019 has led central banks around the world to reevaluate their interest rate strategies and stimulus policies. That change in rhetoric has led to a bump up for stocks as investors predict a longer period of cheap cash.

“It is correct for capital markets to take their cue from central banks but I think they shouldn’t assume that volatility has gone forever just because central banks are in an accommodative posture,” said Lipton at the Spring Meetings of the International Monetary Fund and the World Bank Group in Washington D.C. on Thursday.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: david reid
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IMF’s Lagarde says oil exporters not fully recovered from 2014 shock, warns of ‘white elephant projects’

Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.” “This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.” Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential. Among oil importers in the Middle


Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.” “This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.” Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential. Among oil importers in the Middle
IMF’s Lagarde says oil exporters not fully recovered from 2014 shock, warns of ‘white elephant projects’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, oil, fully, recovered, lagarde, middle, public, region, growth, fiscal, imfs, exporters, shock, white, warns, gdp, projects, spending, global


IMF's Lagarde says oil exporters not fully recovered from 2014 shock, warns of 'white elephant projects'

Oil exporters have not fully recovered from the dramatic oil price shock of 2014, the head of the International Monetary Fund said on Saturday, and she cautioned against spending money on “white elephant projects.”

“With revenues down, fiscal deficits are only slowly declining, despite significant reforms on both the spending and revenue sides, including the introduction of VAT and excise taxes,” Christine Lagarde, the managing director of the IMF, told a conference in Dubai.

“This has led to a sharp increase in public debt, from 13 percent of GDP in 2013 to 33 percent in 2018.”

Lagarde said the uncertainty in the growth outlook for oil exporters also reflected moves by countries to shift rapidly toward renewable energy over the new few decades, in line with the Paris climate change pact.

She said there was scope to improve fiscal frameworks in the Middle East with some of the weaknesses emanating from “short-termism and insufficient credibility.”

Lagarde said governments in the region might be tempted to favor white elephant projects instead of investment in people and productive potential.

Saudi Arabia, the Middle East’s biggest economy, has announced plans to go ahead with three major projects including NEOM, a $500 billion economic zone announced by Crown Prince Mohammed bin Salman.

The projects are backed by the country’s sovereign wealth fund, the Public Investment Fund.

Lagarde also said across the region, it is common for sovereign wealth funds to directly finance projects, bypassing the normal budget process, while state-owned enterprises in some countries had high levels of borrowing, outside the budget.

She said oil exporters could follow the example of other resource-rich countries such as Chile and Norway in using fiscal rules to protect priorities, such as social spending, from commodity price volatility.

Among oil importers in the Middle East region, growth had picked up, but it was still below the level before the global financial crisis, she said.

Fiscal deficits remained high, and public debt had risen rapidly — from 64 percent of GDP in 2008 to 85 percent a decade later, she said. Public debt now exceeded 90 percent of GDP in nearly half of these countries.

Speaking about the global economy, Lagarde said the IMF was not seeing a global recession on the horizon, but risks were rising for global growth due to trade tensions and tightening financial conditions.

The IMF’s revised forecast sees the global economy growing by 3.5 percent this year, 0.2 percentage points below what it expected in October.

“Unsurprisingly, a weaker global environment has knock-on effects on the region through a variety of channels — trade, remittances, capital flows, commodity prices, and financing conditions,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, oil, fully, recovered, lagarde, middle, public, region, growth, fiscal, imfs, exporters, shock, white, warns, gdp, projects, spending, global


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IMF’s Lagarde says a China slowdown, if fast, would constitute a real risk

The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate. Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control. “That the Chinese economy slowing down is fine. “Should the slowdown be excessively fast, it would constitute a real issue both d


The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate. Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control. “That the Chinese economy slowing down is fine. “Should the slowdown be excessively fast, it would constitute a real issue both d
IMF’s Lagarde says a China slowdown, if fast, would constitute a real risk Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, jason alden, bloomberg, getty images
Keywords: news, cnbc, companies, chinas, lagarde, fast, economy, slowing, growth, shong, imfs, constitute, think, slowdown, china, told, risk, real


IMF's Lagarde says a China slowdown, if fast, would constitute a real risk

The International Monetary Fund’s Managing Director, Christine Lagarde, told a panel in Davos that the current slowdown in China’s economy is “legitimate,” but warned it could pose a major risk if the downtrend started to accelerate.

Speaking at the World Economic Forum (WEF), Lagarde said while China’s slowing growth has been a concern, it looked to be under control.

“That the Chinese economy slowing down is fine. It is legitimate its is right and I think it is very much to be controlled by Chinese authorities,” she told CNBC’s Geoff Cutmore.

The Dow Jones Industrial Average sank 300 points on Tuesday after China reported its slowest economic growth in almost three decades. A long-running trade battle with the U.S. has accentuated fears that the world’s second-largest economy could slow more than previously expected.

“Should the slowdown be excessively fast, it would constitute a real issue both domestically and probably on a more systemic basis,” Lagarde added.

Also speaking on the panel was Hugo Shong, founding chairman of IDG Capital. His firm was the first global investment firm to enter China in the 1990s and an early investor of Baidu, Tencent and Xiaomi. Shong said he didn’t currently have any real concern over China’s cooling economy.

“Yes, in the past you were talking about 8 percent GDP (gross domestic product) growth. Now we have 6.6 percent and I think, given the size of the economy, it is a pretty good number,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, jason alden, bloomberg, getty images
Keywords: news, cnbc, companies, chinas, lagarde, fast, economy, slowing, growth, shong, imfs, constitute, think, slowdown, china, told, risk, real


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Central banks should consider issuing digital money, IMF’s Lagarde says

Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde. She said central banks have a role supplying money to the digital economy. “I believe that we should consider the possibility to issue digital currency,” Lagarde said. Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper not


Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde. She said central banks have a role supplying money to the digital economy. “I believe that we should consider the possibility to issue digital currency,” Lagarde said. Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper not
Central banks should consider issuing digital money, IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: elizabeth schulze, chris somodevilla, getty images
Keywords: news, cnbc, companies, imfs, central, world, digital, consider, currency, money, warned, banks, lagarde, issuing, financial


Central banks should consider issuing digital money, IMF's Lagarde says

Central banks should consider issuing digital currencies as money faces a “historic turning point,” according to IMF Managing Director Christine Lagarde.

In a speech at the Singapore Fintech Festival on Wednesday, Lagarde highlighted the changing nature of money as demand for physical cash decreases around the world. She said central banks have a role supplying money to the digital economy.

“I believe that we should consider the possibility to issue digital currency,” Lagarde said.

Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper notes. But she also warned of risks to financial stability and innovation.

“My message is that while the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively,” Lagarde said.


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: elizabeth schulze, chris somodevilla, getty images
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IMF’s Christine Lagarde postpones trip to the Middle East

International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday. “The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul. Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. He is due to fly to the Turkish c


International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday. “The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul. Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. He is due to fly to the Turkish c
IMF’s Christine Lagarde postpones trip to the Middle East Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: saheli roy choudhury, joanna tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, middle, riyadh, trip, lagarde, christine, imf, ceo, khashoggi, turkish, imfs, east, told, event, consulate, postpones, officials, saudi


IMF's Christine Lagarde postpones trip to the Middle East

International Monetary Fund Managing Director Christine Lagarde has postponed her trip to the Middle East, according to an IMF statement on Wednesday.

Lagarde’s visit to the region included attending the Future Investment Initiative, also known as “Davos in the Desert,” in Saudi Arabia. The conference is scheduled for Oct. 23 to 25.

“The Managing Director’s previously scheduled trip to the Middle East region is being deferred,” an IMF spokesperson said. The IMF did not give a reason for the postponement. CNBC has reached out to the IMF for clarification.

The investing event in Riyadh has seen mounting cancellations since the disappearance and suspected killing of Washington Post columnist Jamal Khashoggi. Turkish officials allege that he was murdered by a team of Saudi operatives, but Riyadh has fiercely denied the claim.

Media outlets including CNBC, Financial Times, CNN and The New York Times have also withdrawn from the event, citing concerns about Khashoggi’s disappearance.

Several prominent business leaders have also said they will not be attending the event, including J.P. Morgan Chase CEO Jamie Dimon, BlackRock CEO Larry Fink, Blackstone CEO Stephen Schwarzman and Mastercard CEO Ajay Banga.

Last week, Lagarde told reporters at the IMF and World Bank annual meetings in Bali, Indonesia, that while she was “horrified” at the disappearance and suspected killing of Khashoggi, she was still planning to attend the conference in Riyadh.

“I have to conduct the business of IMF in all corners of the world, and with many governments,” she said at that time. “When I visit a country, I always speak my mind. You know me, I do. At this point in time, my intention is to not change my plan and to be very attentive to the information that is coming out in the next few days, but I speak my mind.”

Khashoggi, who had been living in the United States as a voluntary exile from Saudi Arabia, was a prominent critic of Crown Prince Mohammed bin Salman and the Saudi royal family. He was last seen on Oct. 2 when he entered the Saudi consulate in Istanbul.

Turkish officials told media outlets that Khashoggi was killed and dismembered with a bone saw inside the consulate. The Saudi government has denied those allegations.

An official told the Associated Press on Tuesday that a police search of the consulate found evidence that Khashoggi was slain there.

U.S. Secretary of State Mike Pompeo met Saudi Arabia’s King Salman, Crown Prince Mohammed and Foreign Minister Adel al-Jubeir in Riyadh on Tuesday to discuss the matter. He is due to fly to the Turkish capital of Ankara on Wednesday to meet Turkish officials.


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: saheli roy choudhury, joanna tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, middle, riyadh, trip, lagarde, christine, imf, ceo, khashoggi, turkish, imfs, east, told, event, consulate, postpones, officials, saudi


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China echoes IMF pledge to avoid using currency as a trade tool

“China will continue to let the market play a decisive role in the formation of the RMB exchange rate,” Yi said in an International Monetary and Financial Committee (IMFC) statement posted on Saturday. “We will not engage in competitive devaluation, and will not use the exchange rate as a tool to deal with trade frictions.” His statement echoes currency pledges made in a communique issued by the IMF’s member countries on Saturday to step up their trade dialogue as rising tariff frictions, and hi


“China will continue to let the market play a decisive role in the formation of the RMB exchange rate,” Yi said in an International Monetary and Financial Committee (IMFC) statement posted on Saturday. “We will not engage in competitive devaluation, and will not use the exchange rate as a tool to deal with trade frictions.” His statement echoes currency pledges made in a communique issued by the IMF’s member countries on Saturday to step up their trade dialogue as rising tariff frictions, and hi
China echoes IMF pledge to avoid using currency as a trade tool Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-13  Authors: lintao zhang, getty images
Keywords: news, cnbc, companies, currency, imfc, echoes, countries, avoid, tool, imf, pledge, committee, statement, competitive, imfs, china, rate, exchange, member, using, trade


China echoes IMF pledge to avoid using currency as a trade tool

Sec. Mnuchin: China selling US Treasurys would be costly for them 7:41 AM ET Fri, 12 Oct 2018 | 03:47

The yuan has fallen more than 8 percent against the dollar since the end of April to about 6.91 on Friday, close to the psychologically important 7.0 level not seen in a decade.

“China will continue to let the market play a decisive role in the formation of the RMB exchange rate,” Yi said in an International Monetary and Financial Committee (IMFC) statement posted on Saturday. “We will not engage in competitive devaluation, and will not use the exchange rate as a tool to deal with trade frictions.”

His statement echoes currency pledges made in a communique issued by the IMF’s member countries on Saturday to step up their trade dialogue as rising tariff frictions, and higher borrowing costs threaten to knock global growth.

In the statement from the IMF’s steering committee, the member countries also agreed to debate ways to improve the World Trade Organization so it can better address trade disputes.

“We acknowledge that free, fair, and mutually beneficial goods and services trade and investment are key engines for growth and job creation,” the IMFC said in the statement.

“We will refrain from competitive devaluations and will not target our exchange rates for competitive purposes,” it added.


Company: cnbc, Activity: cnbc, Date: 2018-10-13  Authors: lintao zhang, getty images
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Trade war could cut China’s growth by nearly 2 percentage points over two years: IMF

At its worst, the ongoing trade tensions could knock 1.6 percentage points off China’s economic growth over the first two years, according to an analysis by the International Monetary Fund. The assessment took into account all current and proposed tariffs on Chinese goods that enter the U.S., as well as knock-on effects the trade tensions have on investor confidence and financial markets. Rhee told reporters that direct economic impact from the tariff fight between the U.S. and China is actually


At its worst, the ongoing trade tensions could knock 1.6 percentage points off China’s economic growth over the first two years, according to an analysis by the International Monetary Fund. The assessment took into account all current and proposed tariffs on Chinese goods that enter the U.S., as well as knock-on effects the trade tensions have on investor confidence and financial markets. Rhee told reporters that direct economic impact from the tariff fight between the U.S. and China is actually
Trade war could cut China’s growth by nearly 2 percentage points over two years: IMF Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-12  Authors: yen nee lee, getty images
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Trade war could cut China's growth by nearly 2 percentage points over two years: IMF

At its worst, the ongoing trade tensions could knock 1.6 percentage points off China’s economic growth over the first two years, according to an analysis by the International Monetary Fund.

The assessment took into account all current and proposed tariffs on Chinese goods that enter the U.S., as well as knock-on effects the trade tensions have on investor confidence and financial markets. But much of that impact is expected to be offset by the Chinese government’s policies to stimulate the economy, noted Changyong Rhee, director of the IMF’s Asia and Pacific Department.

The analysis was published on Friday in the IMF’s Regional Economic Outlook report focusing on the Asia Pacific region.

Rhee told reporters that direct economic impact from the tariff fight between the U.S. and China is actually “quite small.” What’s more detrimental is the hit to investor confidence, which has rattled financial markets and is likely to last for a while, he said.

“This is one of the reasons why we feel that headwinds may last longer,” Rhee said. “I don’t know what will be the end … I think the lessons we have taken is how much the global financial markets and real economy are well integrated, no one can be free from such shocks.”

“In the end, there will be no winner from the global trade war,” he said in Bali, Indonesia where the IMF and the World Bank are holding their annual meetings.


Company: cnbc, Activity: cnbc, Date: 2018-10-12  Authors: yen nee lee, getty images
Keywords: news, cnbc, companies, economic, tensions, growth, war, financial, nearly, rhee, markets, imf, points, investor, impact, imfs, percentage, chinas, pacific, cut, trade


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