Rodrigo de Rato, managing director of the International Monetary Fund, has said the dramatic repricing of risk in the financial markets should be healthy for the medium-term stability of the global economy even if it results in short-term pain.

“This reckoning is probably a welcome one but it does not mean that it will be a painless one,” he told the Financial Times in an interview at the Ambrosetti forum in Cernobbio, Italy.