21 Oct 2010

IMF / PRESS BRIEFING

The IMF says that it supports the People’s Bank of China’s decision to raise interest rates for the first time in three years. It upgrades its growth forecast for Asia to 8% but warns that inflationary pressures are beginning to build in the fastest-growing region of the world. IMF

Posted at: October 21, 2010 3:36 pm

Duration: 01:55

Available in: SD

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STORY: IMF / PRESS BRIEFING 	
TRT: 1:55
SOURCE: IMF
RESTRICTIONS: NONE
LANGUAGES: ENGLISH / NATS

DATELINE: 21 OCTOBER 2010, WASHINGTON DC

SHOTLIST:

RECENT – WASHINGTON DC

1. Wide shot, exterior IMF

21 October 2010, WASHINGTON DC

2. SOUNDBITE (English) David Hawley, Senior Advisor: 
"We support the decision of the People's Bank of China to raise rates. Given the pace of recovery in China, it's appropriate that the central bank should continue to withdraw its monetary stimulus and return the pace of credit growth to more normal levels."
3. Cutaway, reporters
4. SOUNDBITE (English) David Hawley, Senior Advisor:
"One has to recognize that any monetary or fiscal policy action by the US or another systemically important country inevitably carries implications for other countries. This only serves to underline our position which is that a coordinated policy response is important to ensure that the benefits of one country's policies are more widely shared."
5. Cutaway, reporters
6. SOUNDBITE (English) David Hawley, Senior Advisor:
"We welcome the consolidation measures adopted earlier this month which should make the 2011 government targets achievable. We urge the authorities to implement these measures forcibly to ensure medium term public debt sustainability. We also urge the authorities to complement these measures with structural reforms to boost productivity and to promote economic growth through labor and product market reforms."

RECENT – WASHINGTON DC

7. Wide shot, exterior IMF

STORYLINE:

The International Monetary Fund (IMF) says it supports the People's Bank of China's decision to raise interest rates for the first time in three years.

In its regular press briefing, IMF spokesman David Hawley said that the organization supports "the decision of the People's Bank of China to raise rates."

He added that "given the pace of recovery in China, it's appropriate that the central bank should continue to withdraw its monetary stimulus and return the pace of credit growth to more normal levels."

The IMF upgraded its growth forecast for Asia to 8% but warned that inflationary pressures are beginning to build in the fastest-growing region of the world.

While China has raised interest rates, the United States (US) is widely expected to announce a second round of quantitative easing next week when the Federal Open Market Committee meets in Washington.

Hawley said it will be important for the US to consider the repercussions of the move on other economies worldwide.

"One has to recognize that any monetary or fiscal policy action by the US or another systemically important country inevitably carries implications for other countries. This only serves to underline our position which is that a coordinated policy response is important to ensure that the benefits of one country's policies are more widely shared," Hawley said.

When asked to comment on Portugal's efforts to cut debt levels, Hawley said that Portugal is moving in the right direction.

"We welcome the consolidation measures adopted earlier this month which should make the 2011 government targets achievable. We urge the authorities to implement these measures forcibly to ensure medium term public debt sustainability. We also urge the authorities to complement these measures with structural reforms to boost productivity and to promote economic growth through labor and product market reforms," Hawley said.