Emerging countries could suffer if the US tightens policy, IMF warns

Emerging countries could suffer if the US turns off the monetary easing taps, the IMF fears.

According to Reuters, a note prepared for the G-20 meeting in St. Petersburg warns that tightening policy is likely to put emerging economies at risk.

In its surveillance note, obtained by Reuters, the IMF urged strengthened global action to revitalise growth and better manage risks, warning some downside risks have become more prominent.

Emerging economies are seen particularly vulnerable to a tightening of U.S. monetary policy, and the IMF recommended policy makers be ready to handle a rise in financial instability.