Print Edition - 2018-02-19  |  Money Digest

IMF’s Lagarde warns on rate risk from US tax reform


Feb 19, 2018-

IMF chief Christine Lagarde warned on Saturday that economic stimulus from US tax cuts may lead to a rapid rise in interest rates which would weigh on countries with high debt levels. The International Monetary Fund was going to be “attentive” to the consequences of the reform, which notably includes a sharply lower corporate tax rate, she told French radio station France Inter. Lagarde’s remarks echoed concerns in financial markets which have been in turmoil amid fears that rising US inflation will trigger faster Federal Reserve interest rate rises than had previously been expected. Several key stock markets lost around 10 percent last week in a brutal correction that Lagarde said in the interview had been “inevitable”. (AFP)

Published: 19-02-2018 10:08

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