G-20 says low rates not enough to boost growth
- 9 years ago
Financial leaders from the world's 20 biggest economies agreed on Saturday to step up reform efforts to boost disappointingly slow growth, saying reliance on ultra-low interest rates would not be enough to accelerate economic expansion.
But they also said they were confident growth would pick up and, as a result, interest rates in "some advanced economies" - code for the United States - would have to rise.
"Monetary policies will continue to support economic activity consistent with central banks' mandates, but monetary policy alone cannot lead to balanced growth," the communique of the G20 finance ministers and central bankers said.
"We note that in line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies."
The wording defied pressure from emerging markets to brand an expected U.S. rate rise as a risk to growth.
But they also said they were confident growth would pick up and, as a result, interest rates in "some advanced economies" - code for the United States - would have to rise.
"Monetary policies will continue to support economic activity consistent with central banks' mandates, but monetary policy alone cannot lead to balanced growth," the communique of the G20 finance ministers and central bankers said.
"We note that in line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies."
The wording defied pressure from emerging markets to brand an expected U.S. rate rise as a risk to growth.