IMF: loose monetary policy is fostering greater risk-taking
The new round of looser monetary policies implemented by major central banks in 2019 in response to trade disputes and weaker growth is increasing risk-taking in the financial sector, says the International Monetary Fund.
Published today (October 16), the fund’s Global Financial Stability Report highlights how this is resulting in higher vulnerabilities such as rising corporate debt, increased exposure to riskier and illiquid assets by institutional investors, and higher foreign-denominated
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