"It is clear that both fiscal support and monetary policy support have to remain in place for as long as necessary and 'cliff effects' must be avoided," Lagarde told an economic forum.

"New coronavirus-related restrictions currently being introduced across Europe will add to uncertainty for firms and households," she told a meeting of the G30, a group of financiers, central bankers and academics.

(Reporting by Balazs Koranyi; Editing by David Clarke)