WASHINGTON—A “sense of complacency” is permeating markets as investors, betting on continued accommodative monetary policy, are stretching asset prices, risking a sudden market correction, the International Monetary Fund (IMF) warned on Jan. 27.
The rollout of COVID-19 vaccines has boosted expectations of a global recovery and helped prompt a surge in asset prices, despite rising infections and persistent uncertainties surrounding the economic outlook, the world’s largest multilateral lender said in its Global Financial Stability Report.
