Complacency in markets because of continued monetary support: IMF

A “sense of complacency” is permeating markets as investors, betting on continued accommodative monetary policy, are stretching asset prices, risking a sudden market correction, the International Monetary Fund (IMF) warned on Wednesday.

The rollout of Covid-19 vaccines has boosted expectations of a global recovery and helped prompt a surge in asset prices, despite rising infections and persistent uncertainties surrounding the economic outlook, the world’s largest multilateral lender said in its Global Financial Stability.

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