Threats to the global economy have lessened in recent months the head of the International Monetary Fund (IMF) has said.

Despite a slowdown in the US and woes in its housing market, global risks were "a little lower than they were six months ago", said Rodrigo de Rato.

But he said world policymakers should remain vigilant.

Last week an IMF report said that events in the US had caused just a small blip on world economic activity.

Speaking at the Peterson Institute for International Economics in Washington, De Rato said that central banks were managing to tame inflation, helped by lower oil prices.

However it was "global imbalances" which were the biggest threat to long-term stability, he said.