UPDATE 1-IMF's Lagarde: cenbank tightening to hit some emerging nations
ABIDJAN Jan 29 (Reuters) - Monetary policy tightening in advanced economies will cause volatility in international markets this year and impact the monetary situation of some emerging economies, IMF Managing Director Christine Lagarde said on Wednesday.
Lagarde, speaking by video link to an investment conference in Ivory Coast, said the outlook for the global economy looked generally positive, with advanced economies set to continue their economic recovery in 2014.
Fast-growing economies such as China and India would also post a solid performance, she said, noting that the IMF recently raised its forecast for global economic growth this year to 3.7 percent.
With the start of the U.S. Federal Reserve's unwinding of quantative easing already jolting emerging markets, Lagarde said that tightening by Western central banks would have an impact this year.
"We think that in 2014, the monetary policy of central banks in advanced economies will induce ... volatility in international markets and in the monetary situation of certain emerging economies," she said from Paris.
The IMF chief said the impact would differ between "solid emerging countries which have room for manoeuvre and those which have not yet built this margin nor introduced a series of economic and budgetary measures."
Emerging markets have witnessed a selloff in recent days amid concerns that tightening would strain emerging economies reliant on foreign capital flows. Turkey's central bank was forced to hike interest rates overnight to stem capital flight.
Lagarde said the outlook for sub-Saharan Africa was positive, with growth for the region expected to top 6 percent in 2014.
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