IMF says Covid support has left world open to new financial crisis

Investors increasingly worried about rising infections and weak recovery in poor countries, report warns

The emergency support provided by central banks and finance ministries during the Covid-19 pandemic has fuelled speculation and left the world vulnerable to another financial crisis, the International Monetary Fund has warned.

Policymakers were faced with a challenging" trade-off between continuing to support economic activity while preventing unintended consequences and medium-term financial stability risks, the IMF said in its half-yearly Global Financial Stability Review (GFSR).