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IMF Urges Swift Action to Stop Spread of Economic Crisis

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October 11, 2012 6:22 AM GMT

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The International Monetary Fund has urged policymakers across the world to take swift action as the eurozone crisis and global slowdown have started affecting the emerging nations, a major force in pulling the world out of the 2009 recession.

"We expect action and we expect courageous and cooperative action on the part of our members," said IMF chief Christine Lagarde ahead of the annual meeting of the IMF in Tokyo.

Echoing the same sentiment, World Bank President Jim Yong Kim said: "Developing countries, which have been the engine of growth, will not be immune to the increased uncertainty in the global economy."

Two major emerging nations have cut their base interest rates reflecting the global uncertainty and domestic growth.

Brazil has cut its benchmark interest rates by 25 basis points to 7.25 percent, an all-time low, following warnings from the IMF that world growth is slowing down. Brazil's economic growth is expected to contract to 1.5 percent in 2012 after growing by 2.7 percent in 2011 and by 7.5 percent in 2010.

Meanwhile, Asia's fourth largest economy, South Korea, has reduced its base interest rates by 25 basis points to 2.75 percent, the second time this year.

The IMF has cut its forecast for South Korea to 2.7 percent from the earlier projection of 3 percent for 2012. The Fund expects it to grow by 3.6 percent in 2013 from the previously estimated 3.9 percent.

Lagarde blamed political bickering which is adding to the uncertainty and delaying the process of global recovery.

"Whether you turn to Europe, to the United States of America, to other places as well, there is a level of uncertainty that is hampering decision makers from investing from creating jobs ... We need action to lift the veil of uncertainty."

In line with the concerns of the IMF, the Japanese finance minister urged European policymakers to take steps to prevent the spread of the crisis.

"We hope that European countries will overcome conflicts in opinions and strengthen their efforts to unite together and establish a monetary union in the true meaning," opined Japan's Finance Minister Koriki Jojima.

Japan also came under criticism from the Fund as it noted in its Global Financial Stability Report that the country failed to make mid-term policy adjustments to avoid harsher economic outcomes.

Turning her attention to the US fiscal crisis, Lagarde called for decisive action from US policymakers to solve the "tax increases and spending cuts" that are projected to take 4 percent of the nation's economic output when they come into effect in early 2013.

http://www.ibtimes.co.uk/articles/393103/20121011/imf-world-bank-annual-meet-tokyo-japan.htm


Added: Oct-11-2012 Occurred On: Oct-11-2012
By: gemini
In:
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Tags: economy
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  • Comment of user 'LSDforuandme' has been deleted by author (after account deletion)!
  • Translation: "Let us enslave your children in exchange for a temporary bit of short-term comfort."

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  • Fuck the international speculator jew Christine Lagarde and fuck the jew's IMF.

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  • Obama must be at fault here, Mitt Romney will save us all as president! :D

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  • I only clicked to see this beautiful blonde with great tits! What a hottie!

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  • Comment of user 'MrScabs' has been deleted by author (after account deletion)!
  • Nice rack Ann

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  • IMF employees pay NO TAX, since they are not tied to any country! But they have no problem dictating to those said countries, I think it's time we clean up the vermon!

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  • Comment of user 'dallenvt' has been deleted by author (after account deletion)!
  • Keep printing money, just like the Weimar Republic did. Brilliant!

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  • LOL, your swift action is about 7 years too late.

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  • We expect you to eat canned beans.....They should have let the economy tank and let it re correct itself.....I would have been in a prime position to buy a house....but with bailouts.....and waiting for 3-4 yrs, I purchased a home even though I knew this was coming. Im pissed off

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  • There will never be enough money. Eventually the EU will collapse

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  • Oops, we threw a wrench into the works, while trying to fix it. Oh well, now you're enslaved even more, but that's a good thing, because there are too many of you and the vast majority of you are worse than useless. So, let's let another wrench slip. Oops, now we're going to send you to fight for control over the earth. Sadly, we can't seem to arrange for enough people to die. It's not like the fun we had last century. Now there are nuclear weapons and nuclear medicine. Let's throw a wrench into More..

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  • Why is it a crisis, since this has been going on for a long time. It is more of a chronic problem which keeps being put on the back burner until the richest people see a possible loss of their wealth?

    The thing the IMF is talking about is going to be what smack's us in the face here in a couple of months when the deficit reduction plan goes into effect. At which time I expect a whole lot of finger pointing, the debt ceiling to be raised, no budget to be passed and our credit rating dropped ag More..

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  • THE POWERS THAT BE ARE RUNNING SCARED, THERE WORLD IS CRUMBLING BEFORE THERE EYES!

    Posted Oct-12-2012 By 

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