Rabobank analysts suggest that this week’s soft activity data from China provides the backdrop to the semi-annual meeting of the IMF which starts in Washington today.

“The latest IMF World Economic report is expected to contain a downward revision to growth projections as indicated last week by incoming Head Kristalina Georgieva. Her remark that “the widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade,” likely suggests a downward revision to growth forecasts for both this year and next. The debate about whether governments should be loosening their purse strings to support ailing growth and to complement accommodative monetary policies could be given an airing during this week’s meetings.”