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Rising debt and low interest posing greatest market risks, IMF’s Lipton says

“In financial markets, there are risks that come from having low interest rates for a very long time,” he said” writes Akio Kon for cnbc.com. The prolonged period of low central bank interest rates and rising debt in developed economies poses the greatest risk to financial markets in the medium-term, according to an International Monetary Fund (IMF) executive.”That’s affecting risk-taking behavior, it’s affecting the market risk that capital markets participants have.”. “We are seeing some greater leverage in the corporate world, in some countries for households, so that rising indebtedness and that increase in market risk really is something that policymakers should keep an eye on.”. He also pointed to ever-mounting debt in both developed and emerging economies.
 
Source: cnbc.com



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