Tasks central banks on sustainable monetary policy

nal financial conditions to address imbalances and build buffers; in others, however, vulnerabilities have continued to build.” It added that “... a considerably number of low income countries and other small non- investment- grade issuers have experienced a sharp deterioration in debt sustainability.”

Addressing a press conference on the findings of the report, the IMF Financial Counselor and Director, Monetary and Capital Markets, Tobias Adrian, said since the last report, “shortterm risks to financial stability have increased, and medium-term risks remain elevated.”

Adrian reiterated that “Vulnerabilities may make the road ahead bumpy, and could put growth at risk,” adding that “our ‘Growth at Risk’ analysis - which links financial conditions to the distribution of future global growth – indicates that, under a severely adverse scenario, growth could be negative three years from now.”

He maintained that “Debt sustainability in low-income countries has deteriorated, and a more complex creditor composition poses challenges for any future debt restructuring,” while countries that are building up higher debt levels are exposed more to currency mix-matches and liquidity transformation stand at higher risks.

Adrian therefore urged policymakers to take urgent