IMF's Lagarde Warns of Volatile Flows From Policy Normalization

Central banks need to stay vigilant as uncertainty remains over the impact of the normalization of monetary policies in advanced economies, International Monetary Fund Managing Director Christine Lagarde said.

“We have known for some time that this is coming, but it remains uncertain as to how exactly it will affect companies, jobs, and incomes,” Lagarde told a conference in Jakarta on Tuesday. “Clearly, policy makers need to stay vigilant about the likely effects on financial stability, including the prospect of volatile capital flows.”

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