Global financial markets may be overconfident, IMF warns

WASHINGTON: Investors may have become overly complacent about financial conditions, creating the risk of a sharp downturn in markets, the IMF said Wednesday.
While policymakers must keep interest rates low to ensure economies recover from the COVID-19 crisis, they also must remain vigilant about potential problems, the IMF cautioned in the latest update to its Global Financial Stability Report.
“Financial stability risks have been in check so far, but we cannot take this for granted,” said Tobias Adrian, head of the IMF’s Monetary and Capital Markets Department.