BERLIN (AP) — The head of the World Bank is pledging to ensure that financing for developing countries doesn't suffer when central banks in rich nations wind down monetary stimulus programs and raise interest rates.
The U.S. Federal Reserve said Wednesday that it could start scaling back later this year its huge bond-buying program — aimed at keeping long-term interest rates low to boost borrowing and spending. Several other major central banks are running ultra-loose monetary policies.
World Bank President Jim Yong Kim said Thursday that there is "deep, deep concern" about what the implications will be for developing countries' access to capital when those policies are tightened.
He said his bank will be ready to provide funding to keep developing countries' growth going and ensure they don't face a financing "cliff."