The following are highlights of the International Monetary Fund and World Bank meetings on Saturday in Washington, where finance ministers, central bankers and other top officials are gathering. JAPANESE FINANCE MINISTER TARO ASO IN STATEMENT TO IMFC ON INFLATION "The Bank of Japan views that, as the effects of the decline in oil prices dissipate, the inflation rate rises again and is likely to reach around 2 percent in or around fiscal 2015." ON IMF QUOTAS REFORMS "Given the delay in the 2010 (IMF quota) reforms, we need to advance discussions on an 'interim step' toward the 2010 reforms. In this regard, Japan believes it necessary to ensure that any option, taken as an interim step, will facilitate the early ratification of the 2010 reforms and will not go beyond nor substitute the outcome of the 2010 reforms." INDIA FINANCE MINISTER ARUN JAITLEY TO IMF STEERING COMMITTEE ON EVENTUAL EXIT FROM UNCONVENTIONAL MONETARY POLICIES (UMP) IN DEVELOPED COUNTRIES: "The exit, when it commences, could create turbulence in global financial markets.
The world has adjusted well to divergent growth and monetary policy expectations but the risk of a "sharp and disorderly reversal" in financial markets remains, Financial Stability Board Chairman Mark Carney said on Saturday. "The risk of a sharp and disorderly reversal remains, given compressed credit and liquidity risk premia," Carney, whose FSB oversees the global financial system, said in a statement to the International Monetary Fund's steering committee. Carney, who is governor of the Bank of England, said market participants needed to be mindful of the risk of diminished market liquidity, asset price discontinuities, and contagion across markets.