16 Jan 2015
This was a bit of a surprise - IMF's Lagarde
FXStreet (Mumbai) - International Monetary Fund (IMF) Managing Director Christine Lagarde spoke yesterday at two different events in response to the SNB’s unexpected decision and also raised concerns over the global economic growth.
Responding to the Swiss Central Bank (SNB) announcement,
"This was a bit of a surprise," IMF Managing Director Christine Lagarde said. "Jordan (SNB Chairman) did not contact me; I find it a bit surprising that he did not contact me."
"I would hope it was communicated with colleagues from other central banks - I don't know that it was,"
And addressing global recovery concerns,
Lagarde said the year 2015 must be the "year of action"
“The fall in oil prices is a welcome shot to boost consumers' purchasing power in oil importing countries. By contrast, oil exporters need to cushion the shock on their economies,”
"Too many companies and households keep cutting back on investment and consumption today because they are concerned about low growth in the future,"
In the euro area, cheaper oil increases the risk of deflation and bolsters the case for additional monetary stimulus. But at the same time, it provides a golden opportunity to reduce energy subsidies and use the savings for more targeted transfers to protect the poor.”
Responding to the Swiss Central Bank (SNB) announcement,
"This was a bit of a surprise," IMF Managing Director Christine Lagarde said. "Jordan (SNB Chairman) did not contact me; I find it a bit surprising that he did not contact me."
"I would hope it was communicated with colleagues from other central banks - I don't know that it was,"
And addressing global recovery concerns,
Lagarde said the year 2015 must be the "year of action"
“The fall in oil prices is a welcome shot to boost consumers' purchasing power in oil importing countries. By contrast, oil exporters need to cushion the shock on their economies,”
"Too many companies and households keep cutting back on investment and consumption today because they are concerned about low growth in the future,"
In the euro area, cheaper oil increases the risk of deflation and bolsters the case for additional monetary stimulus. But at the same time, it provides a golden opportunity to reduce energy subsidies and use the savings for more targeted transfers to protect the poor.”