IMF warns of possible market correction

International Monetary Fund Headquarters 2, Washington, DC — Photo: John Harrington

Central Banking Newsdesk
27 Jan 2021

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The welcome arrival of Covid-19 vaccines has not eliminated the risk of a severe market shock, the International Monetary Fund says.

Its updated Global Financial Stability Report, published today (January 27), says the ongoing economic recovery and market rally are being propped up by policy support.

But, as noted by IMF financial stability chief Tobias Adrian and deputy Fabio Natalucci, several factors could trigger a sudden market repricing.

“As the apparent disconnect between exuberant

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