IMF's Lagarde: There is an emerging risk of low inflation, especially in the eurozone; should see global GDP above +3% in 2014 and 2015
- ECB needs to undertake more monetary easing to fight low inflation.
- Without sufficient policy ambition, the world could fall into a medium-term low growth trap.
- Recovery from the global financial crisis remained weak and that a prolonged period of sluggish growth was a risk.
- The situation in Ukraine is one which, if not well managed, could have broader spillover implications.
- There is also a risk of policy spillover from Fed's exit from monetary policy easing.
- Central banks need to build better communications.