IMF warns against rate cuts, currency intervention to improve trade balance

IThe post, which comes as global central bankers are gathering this week to discuss monetary policy issues in Jackson Hole, Wyoming, said that policy proposals to use monetary easing and direct purchases of other countries' currencies are unlikely to work. (File pic shows the IMF logo on the IMF headquarters in Washington. - AFP)

WASHINGTON: The International Monetary Fund on Wednesday warned against governments trying to weaken their currencies through monetary easing or market interventions, arguing in a blog post that this would hurt the functioning of the international monetary system and make all nations worse off.

The post, which comes as global central bankers are gathering this week to discuss monetary policy issues in Jackson Hole, Wyoming, said that policy proposals to use monetary easing and direct purchases of other countries' currencies are unlikely to work.