The leaders of the International Monetary Fund and the World Bank have launched a strong defence of open markets and free trade, as concern grows that the Brexit vote and calls for protectionism in the US presidential election represent a backlash against globalisation. The IMF believes the political shifts that have led to huge support for Trump and the shock Brexit vote are the biggest current threat to a fragile global economy. Lagarde welcomed the UK’s better-than-expected performance since the Brexit vote. Following Theresa May’s attack on ultra-low interest rates and quantitative easing, Lagarde said: “We currently observe that monetary policy has been under a lot of pressure to act. “All policies – monetary, fiscal and structural – have to come together.

Source: The Guardian October 06, 2016 16:22 UTC