IMF warns of buildup in financial risks, calls for solutions

The International Monetary Fund has called for "urgent action" by policymakers to tackle rising financial vulnerabilities across the globe, as a loose monetary environment has magnified debt burden and encouraged riskier investments.

Over the past six months, while global central banks' shift toward a more dovish stance mitigated near-term downside concerns amid escalated trade disputes, it also "encouraged more financial risk-taking and a further buildup of financial vulnerabilities", the multilateral lending agency said in its latest Global Financial Stability Report.

The rising financial instabilities are "putting medium-term growth at risk", said the IMF report released on Wednesday.