By Jonathan Davies

The International Monetary Fund (IMF) has asked the US Federal Reserve to not raise interest rates until 2016.

In an unusual move, head of the IMF Christine Lagarde said the US should wait for "more tangible signs of wage or price inflation", suggesting that "pockets of vulnerability" have emerged in its economy.

"Deferring rate increases would provide valuable insurance against the risk of disinflation, policy reversal and ending back at zero policy rates," the IMF's report said.

Many market experts had predicted an rate rise at some point this year.

The IMF also recommended that the Federal Reserve hold monthly press conferences, explaining that its communication was 'vital' because of the global implications. The Fed current holds six conferences a year.

The US economy shrank by 0.7% in the first quarter. And the IMF said the contraction would "unavoidably pull down 2015 growth, which is now projected at 2.5%".