The International Monetary Fund (IMF) said on Thursday that the slowdown in the Chinese economy could have a negative impact on the global economic growth. The lender noted that the problems in China could lead to a weaker growth outlook. But the IMF still expects the global economy to expand by 3.3% this year.

According to the IMF, the Fed should remain data-dependent and the interest rate hike should be gradual.

The lender noted that the European Central Bank should be ready to extend its asset buying programme if there is not sufficient improvement in inflation, while the Bank of Japan should also be ready ease its monetary policy further.

The IMF pointed out that the Chinese monetary policy should achieve a smooth transition to more sustainable growth.