WASHINGTON (Thomson Financial) - The global economy may not yet have seen the full effects of the recent financial turbulence and further slowdown may yet be on the cards, the International Monetary Fund's policymaking arm said today.
'Recent disturbances in financial markets in advanced economies are expected to have a moderating effect on growth in the near term, and downside risks to the outlook have increased,' the IMF's International Monetary and Financial Committee said in a joint communique.
On inflation, the IMFC said central banks around the globe 'should focus on achieving price stability while continuing to assess carefully the inflation outlook, taking into account both the inflationary pressures stemming from tight commodity markets and rising oil and food prices, and downside risks to growth.' corbett.daly@thomson.com cbd/dem//wash/ro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.