Thursday, 11 June 2015 - 8:04
World Bank warns emerging economies to 'fasten seatbelts'
The World Bank warned emerging economies around the world of a rocky road ahead as the US moves toward tightening monetary policy and the dollar strengthens.
But the development lender's chief economist also urged the US Federal Reserve to put off any rate hikes until next year so as to give more breathing room to the slow-growing global economy.
In an update of the prospects for world growth, the World Bank trimmed its forecast for 2015 to 2.8 per cent, compared to the 3.0 per cent expansion predicted in January.
That downgrade was due mainly to the US contraction in the first quarter, slow turnarounds in Europe and Japan and China's deceleration.