IMF chief warns on world economy risks

- Central Banking staff
- 01 Apr 2005

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Speaking on Friday 1 April in Spain, IMF chief Rodrigo Rato said large US current account deficits posed a risk to the world economy and warned that a sharp fall in inflows into US bond markets might have serious consequences for markets.

Rato told an audience in Madrid he saw a "downward bias" on the short-term risks to the global economy and warned that the oil market remained "highly susceptible" to shocks as excess capacity was very low.

On the upside, strong corporate balance sheets and

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