The head of the International Monetary Fund (IMF), Christine Lagarde has called on policymakers to take coordinated action to stop the global economy steadily falling into a “new mediocre” of tepid growth.

Speaking in Frankfurt, Germany, Ms. Lagarde described the 7-year-old recovery as “too slow” and “too fragile” while, at the same time, suggesting that risks to the downside were growing.

According to Ms. Lagarde, recoveries in advanced economies like the United States and the United Kingdom were weaker than expected and the recessions in the emerging economies of Russia and Brazil had run deeper and longer than originally anticipated.

“Obviously, Ms. Lagarde is calling for the world’s central banks to embark on another round of monetary easing. None of the advanced economies are keen on fiscal stimulus since it could impact on tight budgets,” said David Eckhart, chief market strategist at Lead Capital Partners.

“The problem is that quantitative easing is already at the limits of what it can achieve because money is not making it into the hands of the consumer. If all else fails, it might not be too long before we see the first direct monetary funding programs in which money is given directly to consumers via tax cuts, credits or social security rebates,” explained Eckhart.

Ms. Lagarde conceded that the global economy was not in a crisis but warned of growing signs that trade and border protectionism were becoming more common as countries grew more inward-looking in the face of unrest among their people.

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