Bank of England Governor Andrew Bailey emphasized the IMF’s crucial role in addressing risky imbalances in the global economy, particularly from the US and China. He highlighted the need for multilateral solutions to trade deficits and surpluses, warning of financial instability risks and advocating for increased domestic demand in China.

Bailey criticized Trump’s economic policies, including tax cuts, and stressed the importance of IMF involvement in global economic stability. He urged the IMF to facilitate discussions with countries like the US and collaborate with the WTO to assess the global trading system for balanced growth and financial resilience.

As head of the Financial Stability Board, Bailey plans to implement resilience tests for hedge funds and banks, prioritizing global financial stability. He also supports the use of digital payment technology for retail transactions but remains skeptical of the necessity of a retail central bank digital currency, stating stablecoins are not a substitute for commercial bank money.

Read more at Yahoo Finance: Bank of England’s Bailey backs IMF to help fix problems in global economy