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WASHINGTON, April 16 (Reuters) - The International Monetary Fund's steering committee on Saturday called on member countries to boost "growth-friendly" spending and said the Fund should explore new precautionary lending tools to help countries deal with slowing global economic growth.
"Downside risks to the global economic outlook have increased since October, raising the possibility of a more generalized slowdown and a sudden pull-back of capital flows," the International Monetary and Financial Committee said in a statement issued after its meeting here.
The committee said a more "forceful and balanced policy mix" was needed to stimulate growth and avoid deflation.
"Growth-friendly fiscal policy is needed in all countries," it said, adding that accommodative monetary policies should continue in several advanced economies and structural reforms should be implemented with other policies to support demand. (Reporting By David Lawder; Editing by Andrea Ricci)