WASHINGTON (Reuters) – Latin American countries will have to tighten their belts as the rising cost of capital and lower commodity prices dampen growth and force countries to do more to drive economic activity, policymakers warned this week.
Both the World Bank and International Monetary Fund expect slower growth in the region this year than last year in the face of weaker Chinese growth slowing demand for commodities and tighter financial conditions as some central banks wind down stimulus.
WASHINGTON (Reuters) – The European Central Bank could not rely solely on purchases of asset-backed securities (ABS) if it resorts to unconventional steps to boost inflation, given the limited supply of the securities, ECB President Mario Draghi said on Saturday.
If the ECB starts injecting money into the economy using asset purchases, it is expected to choose a mix of government and private assets, including ABS, which collapsed during the financial crisis and are still recovering.
WASHINGTON, April 12 (Reuters) – A further strengthening of
the euro would require more loosening in the European Central
Bank’s monetary policy to keep the current amount of monetary
stimulus in place, ECB President Mario Draghi said on Saturday.
Draghi made the strong comments as the issue of weak
eurozone inflation took center stage at a meeting of the
International Monetary Fund, whose steering committee urged the
ECB to consider acting if low inflation becomes persistent.
WASHINGTON (Reuters) – The world’s top economies are monitoring the economic situation in Ukraine for any fallout that may pose risks to economic and financial stability, according to a draft communique by the Group of 20 finance ministers and central bankers.
The draft, which was obtained by Reuters on Friday during the International Monetary Fund-World Bank spring meetings in Washington, also said the G20 was eyeing the effects on the global economy as national policies are recalibrated.
WASHINGTON (Reuters) – Group of 20 countries should give the United States time to get planned reforms to the International Monetary Fund through Congress and not rush into short-term workarounds, Mexican Finance Minister Luis Videgaray said on Thursday.
Australian Finance Minister Joe Hockey is urging G20 countries to find a way around an impasse in the U.S. Congress on reforms increasing funding and widening representation at the IMF, and options are due to be discussed on Friday morning.