Very low or negative interest rates during the pandemic could be helpful but would pose increased risks for savers and the banking system, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Tuesday, as reported by Reuters.
Additional takeaways
“Telling indebted countries not to wait to seek debt relief or debt restructuring.”
“If fiscal, monetary support withdrawn too soon, the risk of massive bankruptcies, economic scarring rises.”
“Debt service suspension for poor countries must be continued because IMF does not see an exit from crisis next year.”
“Tax reform critical to help countries service debt obligations.”
Market reaction
These comments don’t seem to be having a noticeable impact on risk sentiment. As of writing, S&P 500 futures were up 0.18% on the day at 3,398.
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