Economic recovery is spreading worldwide and policymakers must withdraw cheap credit that fuelled recovery to prevent inflation pressures, the Bank for International Settlements said on Monday. The world economy is expected to expand by 4.5 percent this year and inflation generally to remain tame, BIS General Manager Malcolm Knight said at a news conference after releasing the BIS annual report. "What we are seeing is a highly synchronised world expansion," he said. "That suggests the need for a synchronised policy response." Knight added that more restrictive monetary policy may be needed, depending on inflation pressures. "Interest rates need to go to levels that are more neutral and maybe even restrictive in some countries, depending on inflation prospects going forward," he said.///