The strengthening of the global economy will exert additional “upward price pressures” in the near term to commodities markets, the International Monetary Fund warned yesterday.
But the IMF added in its biannual “World Economic Outlook” report that such pressures would be moderated by “high spare capacity and supply responses to the price rebound”.
The commodities market pays attention to the IMF's views as the Washington-based organisation has accurately predicted some recent price movements. In particular, it was among the few official institutions to bet that the downturn was a mere pause in the “commodities super-cycle”, rather than its end.