Emerging markets must prepare for the impact of a rise in U.S. interest rates which could surprise in both its timing and pace, head of the International Monetary Fund (IMF), Christine Lagarde, said in India. In a speech at the Reserve Bank of India (RBI) head office in Mumbai, Lagarde warned that there could be a repeat of the so-called "taper tantrum" seen in 2013 when then Federal Reserve Chairman Ben Bernanke's mere mention of trimming the Fed's bond purchase programme was met with a global market selloff. India, Lagarde said, is pursuing reforms that are timely, but she added that such reforms need speedy pursue. She added that central banks should also stand ready to act, with both liquidity support and targeted foreign exchange interventions.
