There is no panic situation as seen in May when talks of scaling back of bond purchases by Federal Reserve rattled global capital markets, a top International Monetary Fund official said Tuesday.

The recent instability stems from problems in a subset of emerging market countries, Jose Vinals, financial counselor and head of the Monetary and Capital Markets Department at the IMF said.

Vinals said, "So far this is the combination of idiosyncratic factors." He said emerging markets should take more steps to cushion their economies from external shocks.

Vinals told reporters that the Federal Reserve has been successful in convincing markets that the tapering is not tightening.

"I think if they had started taper beforehand it would have been premature," Vinals said.

"I think the Fed has been prudent and it has adequately modulated its pace of normalization and the expectations of tapering and tightening in a way that is consistent with the data that have been forthcoming," the official added.

RTTNews