IMF: Vital for Malaysia to boost policy buffers

Markets are also betting that Christine Lagarde will extend ultra-loose monetary policies at the European Central Bank.

PETALING JAYA: Malaysia must continue to build its policy buffers, given the possibility of escalating global trade tensions, to ensure that it has room to manoeuver in the event of a downturn, said the International Monetary Fund (IMF).

In an exclusive written interview with StarBiz, IMF managing director Christine Lagarde said Malaysia, given its openness to trade, was particularly vulnerable to a general rise in protectionism.