'G8 sees interest rates, inflation top risks'

Berlin, Jun 7: The Group of Eight nations believes that rising interest rates and inflationary pressures are the main risks facing the global economy at the present time, a German government official said on Wednesday.

''There are upward and downward risks,'' a German government official told reporters on condition of anonymity. ''The prospects for the economy are good and have not changed.'' He added the International Monetary Fund (IMF) forecasts would not be revised when the G8 finance ministers meet later this week, though current risks were more likely to result in a downward revision of the IMF's global growth forecast.

Separately, he said that the topic of Iran would likely be discussed at the meeting and added that there had been no deal struck on Russian repayment of its Paris club debt.

REUTERS