WASHINGTON–The head of the International Monetary Fund warned Wednesday that leading nations need to embrace bold policy steps to accelerate a still-modest and fragile global economic recovery.
IMF Managing Director Christine Lagarde said that as the world still struggles to emerge from the 2008 financial crisis, economies are under threat from tensions involving Ukraine and Russia to inaction in countries that should be driving growth.
Lagarde said the European Central Bank, for example, should consider lowering interest rates further and using unconventional policies to support growth and fight inflation that is too low.
Her comments came in a speech previewing next week’s meetings of global finance officials in Washington. The 188-nation IMF and its sister lending organization, the World Bank, will hold their spring policy meetings.
In advance of those discussions, finance ministers and central bank governors from the Group of 20 leading economic powers will also meet.