In addition to reporting that the International Monetary Fund (IMF) on Tuesday released its lowest medium-term global growth forecast in more than 30 years, the IMF has stated that “If Japanese long-term rates continue to rise, the repatriation of funds by Japanese investors could affect sovereign bond yields in Australia, several Eurozone countries, and the United States“.
The Washington-based institution has previously reported that, five years from now, global growth is expected to be around 3%, the lowest medium-term forecast in an IMF World Economic Outlook report since 1990.
In Asia, the IMF comments that allowing more flexibility in yield curve control (YCC) could have some implications for global marketsalthough it could also help avoid sudden policy changes later that could trigger large contagion effects.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
