Central banks around the globe should pay heed to indicators of bubbles and react with rate hikes, the International Monetary Fund (IMF) argued on Tuesday.

In a paper that forms part of the twice-yearly World Economic Outlook, the Fund said central banks focused excessively on CPI inflation at the expense of financial vulnerability. Though the Fund stopped short of saying that low interest rates in developed economies in the run-up to the crisis caused the crunch, it argued that by accommodating