-Caveat Lector- Wednesday September 8 1999 IMF: Agency to urge raising US interest rates By Richard Adams and Gordon Cramb The International Monetary Fund, in its forthcoming half-year report on the world economic outlook, will call for higher interest rates to slow down the US economy and avoid a hard landing. It will raise its forecast for growth in world economic output this year from 2.3 per cent to 2.8 per cent, including improved growth forecasts for all the Asian crisis countries. IMF forecasts for the European Union are unchanged since May although it says the risks of growth being weaker have reduced. Details of the IMF report were revealed in a letter from Gerrit Zalm, Dutch finance minister, to the finance committee of the lower house of parliament. According to the report, expansion of the US economy continues "almost without price or wage pressure". But the IMF sharply raised its forecast for US growth - to 3.7 per cent from 3 per cent in May - and warned that tighter monetary policy might be needed. "In order to limit the risks and to prevent overheating, timely increases in interest rates are probably needed and the sober budget policies of recent years must be maintained." The document says the IMF intends to revalue 10m ounces of its 103m ounce gold reserves to market value after agreement on debt relief for poor countries became "politically unreachable". Spot gold prices rose to $256.20 per ounce on the news, dropping back to $255.75 in London. Yesterday, the IMF would not comment on the accuracy of the summary. "The IMF executive board discussed the world economic outlook last week. However, as is standard practice, final projections won't be ready until closer to the date of the scheduled publication [September 22] of the report," said William Murray of the IMF. The document says the outlook for the world economy has been "considerably improved". Recessions in Russia and Brazil have proved less deep than expected. Japan and Europe are expected to accelerate. The main risk the IMF sees is the continued imbalances in the current accounts of the US, Japan and Europe, and the methods by which these are being reduced. "The way this is done will determine how economic conditions continue," the summary said. On the European Union, it says: "Monetary policy in general is appropriate to the present situation." The IMF does not consider it likely that changes in official rates will be necessary this year. If the euro-zone's recovery is below expectations, the IMF sees room for further reduction of rates and tax cuts. "Most fiscal programmes are insufficiently ambitious and efforts must be increased to reduce the pressure of taxes and achieve budgetary balance or surplus in 2002," the summary said. http://www.ft.com/hippocampus/q15104a.htm Bard DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
