FRANKFURT (AFX) - The IMF believes the main concern for the world economy at present is the ongoing growth slowdown, with inflation lower on the list of priorities, IMF capital markets and financial services chief Garry Schinasi said.
Speaking at a news conference at the European Central Bank, Schinasi said despite continued worries, the world's main economies have not seen a sustained pick up in inflation in recent times. "While inflation is always a risk... I would not say it is a risk at the moment. What is important right now is the continued slowdown in growth in the world economy."
"The inflation risk is lower down the list of priorities", he added.
The ECB has recently kept its key interest rates on hold, saying there are still price risks in the euro zone and that growth should remain in line with its potential this year.
Schinasi added that a risk for the euro zone economy comes from the relatively large exposure on the part of European banks to telecoms companies.
"There is a risk this exposure will become more costly .. but not that it will affect the solvency of the banks," he said.