US stimulus pullback dominates G20 economy talks

Speaking ahead of the start of the Group of 20 summit, when economic issues and Syria will top the agenda, host Russia and China, the world's second largest economy, made clear their concerns about the widely expected 'tapering' of the Fed's multi-billion dollar monetary stimulus policy.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset
moneycontrol.com

Home » News » World News

Sep 05, 2013, 06.49 PM | Source: Reuters

US stimulus pullback dominates G20 economy talks

Speaking ahead of the start of the Group of 20 summit, when economic issues and Syria will top the agenda, host Russia and China, the world's second largest economy, made clear their concerns about the widely expected 'tapering' of the Fed's multi-billion dollar monetary stimulus policy.

Like this story, share it with millions of investors on M3

US stimulus pullback dominates G20 economy talks

Speaking ahead of the start of the Group of 20 summit, when economic issues and Syria will top the agenda, host Russia and China, the world's second largest economy, made clear their concerns about the widely expected 'tapering' of the Fed's multi-billion dollar monetary stimulus policy.

Post Your Comments

Share Cancel

US stimulus pullback dominates G20 economy talks
Russia and China warned on Thursday that the end of the US Federal Reserve's bond-buying programme could have a profound impact on the global economy and urged caution.

Speaking ahead of the start of the Group of 20 summit, when economic issues and Syria will top the agenda, host Russia and China, the world's second largest economy, made clear their concerns about the widely expected 'tapering' of the Fed's multi-billion dollar monetary stimulus policy.

Zhu Guangyao, China's deputy finance minister, urged the United States to be "mindful of the spillover effects and work to contribute to the stability of the global financial markets and the steady recovery of the global economy."

But, briefing reporters ahead of a meeting of the BRICS emerging markets caucus during the G20 talks, Zhu played down the possibility of a bailout for any country in financial difficulty.

The country hardest hit, India, has not approached the other BRICS - which include India and South Africa - despite issuing a public appeal last week for joint forex intervention after the rupee tanked, Russia's summit coordinator Ksenia Yudayeva said.

"We didn't agree on specific measures yet," Yudayeva told a separate briefing, adding that the picture would be clearer when G20 finance ministers meet again in October.

"The countries that have faced the biggest recent capital outflows also have quite weak fundamentals," she said, suggesting that both domestic and international factors were at play in the most troubled economies.

Chairman Ben Bernanke triggered a selloff in emerging market currencies, stocks and bonds and a flight to the dollar when he in May raised the possibility of winding down the Federal Reserve's $85 billion per month bond-buying programme.

The Fed is widely expected this month to take its first steps to reduce the extraordinary monetary stimulus, with potentially huge implications for a global financial system that has come to depend on a cheap and abundant supply of dollars.

India also expressed concern about the end of the monetary stimulus programme.

Arvind Mayaram, economic affairs secretary at India's ministry of finance said: "I think there should be a very strong statement on the G20 having a consensus on the concern about the spillover effects.

"I think if a strong statement is made on these two points, it will have a major calming impact on the markets in the emerging economies," he told reporters ahead of the summit.

Tags  20 summit

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
US stimulus pullback dominates G20 economy talks

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login