25 Aug 2013

IMF head cautions against withdrawing stimulus measures

8:22 am on 25 August 2013

The head of the International Monetary Fund has urged central banks in Europe, the United States and Japan to continue with policies designed to stimulate economic growth.

The US Federal Reserve has signalled it will slow down stimulus measures which have been affecting stock prices and currencies around the world.

Such measures include the printing of money to buy bonds, known as quantitative easing.

However, Christine Lagarde says stimulatory policies have been successful and they are still needed in key regions.

The BBC reports that she has cautioned central banks not to withdraw their support for weak economies too soon.

She is also urging policy makers to work more closely together.