No Sign Of Recovery In Credit Crisis

IMF Sees No Sign Of Recovery

Global financial markets remain fragile and the danger of an economic fallout has increased a year after the credit crunch began, the International Monetary Fund said yesterday. The IMF's latest global financial stability report said world markets are still under strain from the US housing crisis while the twin risks of rising inflationary pressures and the prospect of recession are making life tough for central bankers as regards setting monetary policy. Its downbeat assessment came as the Treasury prepared to launch a report by Sir James Crosby, the former chief executive of HBOS, into ways of reviving Britain's mortgage market. It emerged last night that he will reject the idea of creating a UK version of Fannie Mae, the government-backed body that underwrites a large chunk of US home loans.