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Increase in US rates could ‘throw cold water’ on global economic recovery: IMF chief

"Higher US interest rates could make it more expensive for countries to service their dollar-denominated debt"

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Increase in US rates could ‘throw cold water’ on global economic recovery: IMF chief
GNN Media: Representational Photo

Kristalina Georgieva, managing director of the International Monetary Fund, has said that interest rate hikes by the Federal Reserve could “throw cold water” on already weak economic recoveries in certain countries.

Georgieva, speaking via videoconference at The Davos Agenda virtual event on Friday, said an increase in US rates could have significant implications for countries with higher levels of dollar-denominated debt.

She said it was therefore “hugely important” that the Fed was clearly communicating its policy plans to prevent surprises. Higher US interest rates could make it more expensive for countries to service their dollar-denominated debt.

On a panel moderated by CNBC’s Geoff Cutmore, Georgieva said the IMF’s message to countries with high levels of dollar-denominated debt was: “Act now. If you can extend maturities, please do it. If you have currency mismatches, now is the moment to address them.”

She added that her biggest concern is for low income countries with high levels of this debt, highlighting that two-thirds were now either in “debt distress” or in danger of falling into it — that’s twice as many as in 2015.
‘Losing some momentum’

The IMF expects the global economic recovery to continue, Georgieva said, but stressed that it was “losing some momentum.”

As such, she suggested that a New Year’s resolution for policymakers should be “policy flexibility.”

“2022 is like navigating an obstacle course,” she said, given risks such as rising inflation, the Covid-19 pandemic and high debt levels. The IMF warned in December that global debt hit $226 trillion in 2020 — the largest one-year rise since World War II.

With regards to inflation, Georgieva stressed that the problem is country specific. Prices are rising at startling speeds in a number of countries: euro zone inflation hit a record high of 5% in December, the U.K. inflation rate hit a 30-year high in the same month and the U.S. consumer price index rose at its fastest pace since June 1982.

“That country specificity is what makes 2022, in a way, even more difficult than 2020,” Georgieva said.

“In 2020, we had similar policies everywhere because we were fighting the same problem — an economy in standstill. In 2022, conditions in countries are very different, so we cannot anymore have the same policy everywhere, it has to be country specific and that makes our job in 2022 so much more complicated.”

SOURCE: CNBC

Faisal Ali Ghumman

Mr. Ghumman is a seasoned journalist who has 19 years of diversified experience in print, electronic and digital media. He has worked with 92 News HD, Daily Pakistan Today, Daily The Business, Daily Dawn, Daily Times and Pakistan Observer as News Reporter, Feature Writer, Editor, Web Content Editor and Article Writer. Mr Ghumman has graduated from the Bahauddin Zakariya University Multan and is currently enrolled in M.Phil in Mass Communication at the University of Punjab.

Entertainment

The dinosaurs are back in latest adventure 'Jurassic World Dominion'

The film, which begins its global cinema roll-out on June 1, features plenty of stunning visual effects showing the dinosaurs living alongside humans

Published by Faisal Ali Ghumman

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The dinosaurs are back in latest adventure 'Jurassic World Dominion'

Casts old and new return for more dinosaur misadventures in "Jurassic World Dominion", in a final outing concluding the second trilogy of films in the popular franchise.

The movie is set four years after the destruction of the remote island of Isla Nubar, and dinosaurs roam the entire world, living and hunting among humans.

"Jurassic Park" actors Laura Dern and Sam Neill reprise their roles as paleobotanist Dr Ellie Sattler, now a soil and climate change scientist, and paleontologist Dr Alan Grant, reuniting with their castmate from the 1993 movie Jeff Goldblum, who plays mathematician Dr Ian Malcolm.

The movie sees them join forces with Chris Pratt's animal behaviourist Owen Grady and Bryce Dallas Howard's activist Claire Dearing, who have helmed the more recent "Jurassic World" trilogy of films.

"Both of them (Dern and Neill are) terrific friends... and changed my life for having known them for all these 30 years... We were in a movie that got people's attention and entertained people," Goldblum, who featured in 2018's "Jurassic World: Fallen Kingdom", told Reuters at a London press event for the movie on Friday.

"And now, for the first time, being reunited on screen and getting a chance to work together under these interesting circumstances with this new cast... what a parade and a cobb salad of lucky teammates for me."

The film, which begins its global cinema roll-out on June 1, features plenty of stunning visual effects showing the dinosaurs living alongside humans. Soon enough, threats emerge.

"What I'm so grateful for and why I felt privileged to come back as Dr Ellie Sattler is it has a deeply rooted environmental message as the entire franchise does, because ultimately it's about corporate greed and previous extinction," Dern said.

 
Howard, whose character was former operations manager at the now closed dinosaur park in the first "Jurassic World" movie, said wrapping up the trilogy which began in 2015 was emotional.

"I cried so much," she said.

"There was some of the actors on my flight home, and they messaged everyone going like, 'Bryce cried the entire 10 hours home.' I'm like, 'I know'."

SOURCE: REUTERS

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Pakistan

Govt coalition agrees on name of Justice (r) Maqbool Baqar as Chairman NAB

The government believes the Opposition Leader will also support the government's pick

Published by Siddra Sumreen

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Govt coalition agrees on name of Justice (r) Maqbool Baqar as Chairman NAB

Islamabad: The government and its coalition partners have agreed on name of Justice (retd) Maqbool Baqar as the new Chairman of the National Accountability Bureau (NAB).

According to sources privy with the development, the name of a former Supreme Court judge came under discussion during a meeting of Prime Minister Imran Khan and former president Asif Ali Zardari.

Sources further said that Government believes the Opposition Leader of the National Assembly will also support the government pick as Maqbool Baqar’s judicial career is spotless.

Government members are hopeful that if all goes smoothly, Justice (retd) Maqbool Baqar will be the new head of the anti-graft watchdog. 

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Pakistan

Hot, dry weather expected in most parts of country

Rain-wind/thunderstorm is expected at isolated places

Published by Siddra Sumreen

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Hot, dry weather expected in most parts of country

Islamabad: Mainly hot and dry weather is expected in most parts of the country, while very hot in Punjab and upper Sindh during the next twelve hours.

However, rain-wind/thunderstorm is expected at isolated places in Upper Punjab, Upper Khyber-Pakhtunkhwa, Gilgit Baltistan and Kashmir.

Temperature of some major cities recorded this morning:            

Islamabad twenty-four degree centigrade, Lahore and Karachi twenty-nine, Peshawar twenty-five, Quetta, Gilgit and Muzaffarabad nineteen and Murree fifteen degree centigrade.      

According to Met office forecast for Indian Illegally Occupied Jammu and Kashmir, partly cloudy weather with chances of rain and wind-thunderstorm is expected in Srinagar, Jammu, Leh, Pulwama, Anantnag, Shopian and Baramulla.

Temperature recorded this morning: 

Srinagar, Anantnag and Baramulla fourteen, Jammu twenty-three, Leh seven, Pulwama and Shopian thirteen degree centigrade.

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