Will G20/IMF Push for Coordination?
In its latest pre-G20 staff report, the IMF called upon developed economies to maintain monetary policy which ‘continue supporting demand given the still-large output gaps and ongoing fiscal consolidation’. The minutes from the latest meeting suggest the FOMC was going to keep this stance in any case, but there was mention of the risks of Emerging Market stress, implicitly acknowledging the impact of QE withdrawal. In this respect, ‘exit coordination’ perhaps deserved more than a passing mention by the IMF.
Read the full report: UBS