The world economy is at a “pivotal juncture” as trade tensions flare, members of the International Monetary Fund said in a draft statement after a week of discussions that have been overshadowed by US President Donald Trump’s trade war.

The International Monetary Fund said Asian central banks generally have room to lower interest rates to support domestic demand and offset the impact of the escalating global trade war, with the region in much stronger shape than before the Asian financial crisis.

Many Asian central banks have room to ease monetary policy to cushion the blow to their economies from U.S. tariffs, a senior International Monetary Fund official said on Thursday, after the fund cut its GDP estimates for the export-driven region.