IMF Warns It’s Too Soon to Sound All-Clear on Financial Turmoil

  • Fund sees ‘perilous combination’ of financial vulnerabilities
  • Bank stress likely to weigh on global growth, IMF says
WATCH: IMF Chief Economist Gourinchas sees a potential contraction in bank lending possibly weighing on global growth this year.Source: Bloomberg
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The International Monetary Fund warned it was too soon to sound the all-clear from the turmoil that’s shaken the world financial system and said the banking breakdowns will likely be a drag on global economic growth.

While forceful actions by policymakers to a series of bank collapses have reduced investor anxiety, the financial markets remain fragile and stressed, the IMF said in its semi-annual Global Financial Stability Report released Tuesday.