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24 Feb 2014
Flash: G20 points to normalized monetary policy - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, noted that the G20 stressed the need to gradually move to a normalization of policies.
Key Quotes
"The G20 communiqué released over the weekend noted that growth in China continued to remain solid while acknowledging strengthening growth in the US, UK, Japan and the euro-zone. Despite these recent improvements, G20 members pledged to develop ambitious but realistic policies with the aim to lift their collective GDP by more than 2% above the trajectory implied by current policies over the coming five years."
"It will equate to USD2.0 trillion more in real terms leading to significant job gains according to the communiqué. The G20 also recognised that monetary policy needs to normalize in due course in advanced economies which should be beneficial in the medium-term for financial stability."
"However in the transition phase the communiqué stressed that central banks should maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated being mindful of their impact on the global economy. It attempts to address some concerns amongst policymakers over the negative fallout upon their economies from the Fed’s ongoing QE tapering."
Key Quotes
"The G20 communiqué released over the weekend noted that growth in China continued to remain solid while acknowledging strengthening growth in the US, UK, Japan and the euro-zone. Despite these recent improvements, G20 members pledged to develop ambitious but realistic policies with the aim to lift their collective GDP by more than 2% above the trajectory implied by current policies over the coming five years."
"It will equate to USD2.0 trillion more in real terms leading to significant job gains according to the communiqué. The G20 also recognised that monetary policy needs to normalize in due course in advanced economies which should be beneficial in the medium-term for financial stability."
"However in the transition phase the communiqué stressed that central banks should maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated being mindful of their impact on the global economy. It attempts to address some concerns amongst policymakers over the negative fallout upon their economies from the Fed’s ongoing QE tapering."