IMF report highlights global financial fragilities despite rate cuts

WASHINGTON, Oct. 22 (Xinhua) -- The International Monetary Fund (IMF) on Tuesday said that despite rate cuts and buoyant markets, there are mounting global financial fragilities, urging policymakers to "remain vigilant" about the medium-term prospects.

The newly released Global Financial Stability Report highlighted two areas of concern. For one, accommodative financial conditions have continued to increase vulnerabilities, such as lofty asset valuations around the world, increased government and private-sector debt levels, and more use of leverage by financial institutions, Tobias Adrian, director of the IMF's Monetary and Capital Markets Department, and his colleagues wrote in a blog.