IMF chief warns about oil price impact on global economic growth

Managing Director of the International Monetary Fund (IMF) Rodrigo Rato said on Thursday that the rising oil prices has become a threat to the world economic growth.

Speaking at a press conference introducing the annual meeting of the World Bank and the International Monetary Fund, Rato said " oil prices have become certainly a threat to the world economy."

He said prices had soared not just because of demand "but also because of supply constraints, especially in refinery capacity".

The constraints are a "worrisome sign regarding the future of world growth", he said.

"We emphasize the need to take that into account from the point of view of policymakers but also central bankers and monetary regulations," he said.

In its latest World Economic Outlook (WEO) report released on Wednesday before the annual meeting, the IMF said high and volatile oil prices remain a significant global risk.

"With recent oil price increases owing less to demand pressures, further price increase could have a less benign impact, especially if they had a significant effect on consumer confidence and therefore spending," the report said.

Source: Xinhua