The Monetary Fund warns against a rapid rise in interest rates

The International Monetary Fund (IMF) has warned of a sharp rise in interest rates. Fiscal incentives from US President Joe Biden will support the expansion of the US economy. The IMF called on central banks to be vigilant to prevent a sudden sharp rise in interest rates and tightening funding conditions, which could spill over to emerging markets, even though the Biden administration's $ 1.9 trillion (1.59 trillion euros) fund will benefit most countries. IMF spokesman Gerry Rice told a regular news conference that, according to the fund's preliminary forecasts, the stimulus package, approved by the House of Representatives on Wednesday (March 10), will increase US gross domestic product (GDP) by 5% to 6% over the next three years. However, further analysis is needed for a more accurate estimate. However, the extremely cheap dollar funding also means that there is a risk of a sudden tightening of financial conditions, which needs to be closely monitored, Rice added.