IMFC pledges to take joint action to mitigate risks, enhance resilience

Source: Xinhua| 2019-04-14 06:45:28|Editor: yan
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WASHINGTON, April 13 (Xinhua) -- The International Monetary and Financial Committee (IMFC) on Saturday pledged to make concerted efforts to mitigate risks and enhance resilience against the backdrop of a slowing global economy.

"Trade tensions, geopolitical risks and political uncertainties are among the challenges," chairman of the IMF steering committee, Lesetja Kganyago, said in a press conference at the Spring Meetings of the IMF and the World Bank.

"We agree that we need to act promptly to protect the (economic) expansion," said Kganyago, who is also governor of the South African Reserve Bank.

"Fiscal policy should remain flexible and growth-friendly, rebuild buffers, and strike the right chord between ensuring debt sustainability and supporting demand," Kganyago said. "We also agreed that our social objectives need to be considered in the fiscal policy mix."

On monetary policy, the committee agreed that it should ensure that "inflation is on track toward target and inflation expectations are well anchored," the IMFC chairman said.

Central bank decisions need to remain "well communicated and data dependent," he said.

The IMFC, the International Monetary Fund (IMF)'s policy setting committee, also vowed to strengthen international cooperation, particularly on issues of global imbalances, trade tensions, international corporate taxation and sustainable financing practices, according to its newly released communique.

On trade tensions, the IMFC said it recognizes the need to resolve trade tensions and supports the necessary reform of the World Trade Organization to improve its functioning.

The committee also emphasized the importance of advancing financial and structural reforms, noting that such reforms are critical to boosting potential growth and employment, enhancing resilience, and promoting inclusion.

The IMF on Tuesday lowered its global growth forecast for 2019 to 3.3 percent in its latest World Economic Outlook report, down 0.2 percentage point from its January estimation.