Christine Lagarde, head of the International Monetary Fund, said that the world’s economic recovery is "too slow, too brittle and too lopsided".
In her speech in New Delhi, she said that that monetary policy in the world's leading economies is out of step and could cause "excessive volatility" on international financial markets.
"Looking ahead, something better may yet come on the back of low oil prices and interest rates," she highlighted. "Still, there are significant risks to this fragile global recovery."
The major ones were what Lagarde called "asynchronous monetary policy" in developed nations. Central banks of the US and UK are normalizing their monetary policies, while the eurozone and Japan boost their monetary stimulus.
The US Federal Reserve is widely expected to raise its interest rates this June. However, higher rates could result in capital outflows from emerging markets into the US.
Seven years after the global financial crisis, the world economy will grow by 3.5% in 2015 and 3.7% in 2016, Lagarde said.
