Christine Lagarde, speaking at a conference on global business
and social trends in Dubai, said economies were also supported
by plenty of financing available.
"I'm reasonably optimistic because of the landscape we have at
the moment. But we cannot sit back and wait for growth to
continue as normal," she said in her first public comments on
market movements since the latest round of turmoil at the end of
last week.
"I'm ringing not the alarm signal, but the strong encouragement
and warning signal."
Global stock markets were hit by wild fluctuations, with the
U.S. benchmark S&P 500 <.SPX> tumbling 5.2 percent last week,
its biggest weekly percentage drop since January 2016. The
volatility was fuelled by investor worries about rising interest
rates and potential inflation.
Lagarde repeated an IMF forecast, originally issued last month,
that the global economy would growth 3.9 percent this year and
at the same pace in 2019, which she said was a good backdrop for
needed reforms.
She did not give details of the reforms she wanted to see beyond
saying authorities needed to move to regulation of activities,
not entities.
"We need to anticipate where the next crisis will be. Will it be
shadow banking? Will it be cryptocurrencies?" she said.
(Reporting by Tom Arnold and Alexander Cornwell; Writing by
Andrew Torchia; Editing by Andrew Heavens and Susan Fenton)
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