Growth could be hit by oil price, says IMF head

WASHINGTON - Further sharp increases in oil prices could start to weigh on global growth, the head of the International Monetary Fund said today.

"So far the effects of higher oil prices on global growth and inflation have been manageable, partly because higher oil prices owe much to strong global demand and partly because of the improved anti-inflationary credibility of central banks," Rodrigo Rato said in a speech prepared for delivery at Georgetown University in Washington.

"But, further sharp increases may have more serious effects," he added, warning that the oil market remained vulnerable to price shocks and that producing and consuming countries need to work together to ensure market stability through better energy conservation, reduced obstacles to investment and improved transparency of oil data.

- REUTERS