World Bank MD: US Fed decision provides breathing space

World Bank managing director Sri Mulyani Indrawati has described the US Federal Reserve's decision not to withdraw stimulus measures yet as "providing a breathing space for many a policy maker".

The central bank said it was taking a more cautious stance because of concerns about unemployment and economic recovery.

The uncertainty about "tapering" had led to volatility among emerging economies but Ms Indrawati said that had provided "valuable information" for policy makers as markets would "point very sharply at the weaknesses and source of vulnerability of their economy".