G20 warns of volatility risk
Washington — The Group of 20 leading economies on Friday warned of a heightened risk of financial volatility as the monetary policies of major central banks begin to go their separate ways.
“In an environment of diverging monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimise negative spillovers,” G20 finance ministers and central bankers said in a draft communique.
“We will continue to monitor financial market volatility and take necessary actions,” the draft communique said.
The language echoed other recent G20 statements, and was evidence of continued concern over potential financial market and economic disruptions as the US Federal Reserve moves toward an interest rate hike, even as the European Central Bank and Bank of Japan keep the monetary spigots wide open.
Washington — The Group of 20 leading economies on Friday warned of a heightened risk of financial volatility as the monetary policies of major central banks begin to go their separate ways.
“In an environment of diverging monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimise negative spillovers,” G20 finance ministers and central bankers said in a draft communique.
“We will continue to monitor financial market volatility and take necessary actions,” the draft communique said.
The language echoed other recent G20 statements, and was evidence of continued concern over potential financial market and economic disruptions as the US Federal Reserve moves toward an interest rate hike, even as the European Central Bank and Bank of Japan keep the monetary spigots wide open.
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