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Unconventional monetary policy should be temporary - IMF chief

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Reuters MUMBAI
Last Updated : Mar 17 2015 | 5:48 PM IST

MUMBAI (Reuters) - "Unconventional" monetary policy should be temporary in nature and used to deal with specific economic issues, the head of the International Monetary Fund said in India on Tuesday.

Commenting on the impact of policies like quantitative easing and ultra low interest rates, IMF Managing Director Christine Lagarde said such moves were not "supposed to last forever".

"They are of the temporary nature, and they were clearly intended by all those who articulated their vision about unconventional monetary policies to deal with specific issues and particular circumstances," she said.

In her prepared remarks earlier, Lagarde said emerging markets must prepare for the impact of a rise in U.S. interest rates which could surprise in both its timing and pace.

(Reporting by Mumbai Treasury Desk; Editing by Clara Ferreira Marques)

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First Published: Mar 17 2015 | 5:37 PM IST

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