Risk management

“Monetary Giant Inflatable Toys policy settings are now broadly supportive of recovery, and a risk-management approach would suggest that policy should be on hold,” it added.

The IMF said a decline in the dollar’s value had brought the currency closer to levels consistent with medium-term fundamentals.

It noted, however, that the adjustment had been uneven – with larger drops against free-floating currencies, such as the euro, and smaller moves against currencies of countries with large current account surpluses, such as the China. Because of this, its impact on bringing about better balance to global trade flows had been limited, the IMF said.