IMF says Pakistan has not approached fund for deal

The reserve requirement ratio (RRR) was cut by a full percentage point, effective Octover 15, injecting a net 750 billion yuan (US$109.2 billion) in cash into the banking system. Australia's S&P/ASX 200 gave up 1.0 per cent to 6,041.10.

The IMF said the global economy would grow 3.7 per cent this year, the same as in 2017 but down from the 3.9 per cent it was forecasting for 2018 in July.

"The continent could do much better once these economies are on a more solid footing, particularly South Africa and Nigeria, because they are really large and affect a number of countries in their neighbourhood". It said the dispute between the USA and China would especially leave developing economies vulnerable to sudden stresses.

U.S. Treasury Secretary Steven Mnuchin is expected to meet with worldwide finance officials in Indonesia this week during IMF and World Bank summits, though as of Monday he had no meetings scheduled with Chinese officials - as reported by Reuters.

The Economic Counsellor and Director of Research Department at the IMF, Maurice Obstfeld disclosed the Fund's new projection for global economic growth.

As part of its new Global Financial Stability Report, the International Monetary Fund said on Wednesday that financial institutions to "step up their preparations for a post-Brexit landscape" and prepare for the worst case scenario - a no-deal Brexit, also known as a hard Brexit. Over the medium term, growth is expected to gradually slow to 5.6 per cent as the economy continues to make the transition to a more sustainable growth path with continued financial de-risking and environmental controls, it noted. Both nations had to raise interest rates sharply in recent months.

The IMF said it expects inflation to accelerate around the world this year, due largely to increasing commodity prices.

Wednesday warned that global growth may be significantly harmed with further escalation of trade tension, which is a result of the uneven global economic recovery that has fuelled inward-looking policies and contributed to increased policy uncertainty.

It found that global GDP output under this scenario would fall by more than 0.8% in 2020 and remain roughly 0.4% lower in the long-term compared to levels without these effects, which "inflict significant costs to the global economy, especially through its impact on confidence and financial conditions".

It left 2018 growth forecasts for the two countries unchanged at 2.9 percent for the United States and 6.6 percent for China.

The country recorded an average 4.7 percent growth between 2000 and 2009.

Released in Bali during the annual meeting of the International Monetary Fund and the World Bank, the IMF's flagship World Economic Outlook said its 2019 growth projection for China is lower than in April, given the latest round of USA tariffs on Chinese imports, as are its projections for India.

Vanessa Coleman

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