Economic Buzz: Short-Term Financial Stability Risks Increase Against Backdrop Of Tighter Financial Conditions, Says IMF

The International Monetary Fund, in the Global Financial Stability Report, said the short-term financial stability risks have increased somewhat against the backdrop of slightly tighter financial conditions. The medium-term risks are still elevated as financial vulnerabilities, which have built up during the years of accommodative policies, could mean a bumpy road ahead and put growth at risk, the fund added. Although emerging markets have generally improved fundamentals, it could be vulnerable to sudden tightening of global financial conditions. The Washington-based lender cautioned that policymakers and investors should remain attuned to the risks of rising interest rates and higher market volatility.