UPDATE 2-Action needed to boost confidence in global economy, IMF says

Sat Apr 20, 2013 5:39pm EDT
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* Finance leaders warn on over-reliance on monetary policy

* China says rich nation policies could be harmful

* IMFC recommits to avoid competitive forex devaluations

* IMF to look at impact of unconventional policies

By Lesley Wroughton and Krista Hughes

WASHINGTON, April 20 (Reuters) - Global finance officials on Saturday said monetary policy alone was not enough to restore confidence in the shaky global economy as they urged countries to take other steps to reinvigorate growth and create jobs.

"We need to act decisively to nurture a sustainable recovery and restore the resilience of the global economy," the International Monetary Fund's steering committee said at the conclusion of the world lender's spring meeting.

Central banks in the biggest economies should continue their accommodative monetary policies amid an uneven and weak economic recovery, the International Monetary and Financial Committee said in a communique.

Easy-money initiatives alone, however, cannot be counted upon to provide sufficient stimulus, it said as it called for "credible" plans to tighten budgets over time and structural reforms to make economies more productive.   Continued...