IMF chief says need to be sensible on talk of trade war

HONG KONG, April 11 (Reuters) - International Monetary Fund (IMF) chief Christine Lagarde said on Wednesday countries need to be sensible about talk of a trade war, as a conflict between the United States and China creates uncertainty for businesses and their global supply chain.

Following a speech in Hong Kong, Lagarde said the impact of threats is minimal on both sides, but what is not minimal is how confidence can be undermined.

Earlier, she said the IMF was optimistic on the outlook for global growth but warned darker clouds were looming due to fading fiscal stimulus and rising interest rates. (Reporting by Venus Wu; Editing by Anne Marie Roantree and Jacqueline Wong)