IMF asks Fed to delay rate rise

In an unusual move, the International Monetary Fund has urged the US central bank to delay any rise in interest rates until 2016.

IMF managing director Christine Lagarde said the Federal Reserve should wait until policymakers see more tangible signs of wage and price inflation.

She added that a gradual rise in the US benchmark federal funds rate would be appropriate.

Ms Lagarde also said the IMF recognised the work that the US had done.

In the IMF"s annual assessment of the US economy, she said rate decisions should be data dependent.

Many Washington watchers predict an interest rate rise this year.

But recent economic reports have been mixed, including data showing that the US economy shrank an annualised 0.7% in the first quarter.

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