April 28, 2006
Economies must adapt to high oil prices – IMF boss


WASHINGTON, USA (AFP) – IMF managing director Rodrigo Rato warned that the surge in oil prices has had only a limited impact on global economic growth, but that economies must adapt to the high prices.

“The impact of higher oil prices on the global economy has so far been moderate, but it remains a serious risk,” Rato told reporters ahead of spring meetings of the International Monetary Fund and World Bank.{{more}}

“It is likely that higher prices are going to last and that, among other things, (this) has to show all of us that we have to adjust to a situation that is going to last.”

Rato’s remarks came as crude oil futures hit new peaks, above US$74.00 a barrel in London and US$72.00 in New York owing to concerns about a gasoline supply crunch in the United States and tensions over Iran’s nuclear programme.