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Imf Warns Of Potential Risks To Global Growth - Too Much Talk Of Rates Increasing....

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http://uk.reuters.com/article/2014/07/29/uk-imf-economy-idUKKBN0FY1P820140729

Sharply higher interest rates around the world could combine with weaker growth in emerging markets to slice as much as 2 percentage points off global growth in the next five years, the International Monetary Fund said on Tuesday.

In a report assessing how individual national policies could interact to undermine the world economy, the IMF also warned the conflict between Russia and Ukraine could reverberate to the rest of the region if sanctions against Russia escalate, hitting natural gas supplies to Europe and weakening European banks.

The resulting impact could prompt further gyrations in financial markets, in contrast to the recent period of market calm, the IMF said in its 'spillovers' report.

In its worst-case scenario, the IMF said the United States and United Kingdom could tighten monetary policy sooner than expected, leading to higher borrowing costs worldwide, even as key emerging market growth slows a further 0.5 percentage point over the next three years.

The two developments would reinforce each other, prompting slower growth and hurting in particular those emerging markets with large economic imbalances, such as Argentina, Brazil, Russia and Turkey.

Yep interest rates at 0.75 or 1% could just totally feck up the global economy. There simply is no recovery if rates can't go up then we are living in la la land. When the next recession comes all hell is going to break lose it will be interesting to see what our dear central bank leaders do.

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Yesterday's Times (Tuesday July 29, 2014) :rolleyes:

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Edited by Venger

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Yep interest rates at 0.75 or 1% could just totally feck up the global economy. There simply is no recovery if rates can't go up then we are living in la la land. When the next recession comes all hell is going to break lose it will be interesting to see what our dear central bank leaders do.

Why would interest rates affect 'real growth', its fake growth based on inflation they're worried about.

Shushhh... we need to save the boom companies, reliant on low rates, and those who've even set up, or expanded into it with loads of debt, as the new normal.

Relax. Labour may be helping enable the debt for other house developers, (Help To Build) to buy land plots at super-inflated high prices, so young people can compete with investors/landlords on a few more houses to be built at v-high asking prices.

Times, scans from Monday 28 July.

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