UK Chancellor Philip Hammond said that Brexit had come up “a great deal” at the G20.
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Hammond, speaking after his first meeting with his fellow global finance chiefs from the Group of 20 economies, said concern about the shock result of Britain’s European Union membership referendum had increased uncertainty about the global economy.
U.S. Treasury Secretary Jacob Lew said ahead of the meeting that it was not the right time for coordinated action similar to that in 2008-09 following the global crisis because economies face different conditions.
Sapin made the comments at a news conference after a G20 meeting of finance ministers and central bankers in China on Sunday.
“It’s been a dizzyingly unpredictable time since the United Kingdom voted to leave the European Union”, said Alan Hudson, EY’s head of restructuring in the United Kingdom and Ireland, said: “What we saw in the second quarter – and are still seeing now – is the initial impact of this uncertainty”.
Before the meeting the International Monetary Fund (IMF) downgraded its forecasts for global growth this year and next by 0.1 percentage point, to 3.1 percent and 3.4 percent respectively.
In a joint statement after a two-day meeting, envoys of the Group of 20 also rejected trade protectionism, an issue that has risen in prominence as U.S. Republication presidential candidate Donald Trump has talked about restricting access to American markets.
“But with “Brexit” still very much unfolding, more negative outcomes are a distinct possibility”, the report said.
Lou said that tax policy should assume a more important role in coordinating global economic rules when “the effectiveness of fiscal and monetary policies is diminishing”.
Data on Friday seemed to bear out worries, with a British company activity index publishing its most significant drop in its 20-year history.
“‘I hope that there is going to be clarification about the timing and process of the divorce”, Italy’s Economy Minister Pier Carlo Padoan said. “The sooner the better so this generates a new equilibrium”, Italian Economy Minister Pier Carlo Padoan told Reuters.
We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes.
Given that the yen has stabilised at around 106 yen to the dollar, however, Aso said he did not raise the issue of currencies in a bilateral meeting with Lew earlier on Saturday.
So-called “helicopter money” was not discussed, said Bank of Japan Governor Haruhiko Kuroda, who has repeatedly said helicopter money was not under consideration.
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“We have to be ready as government, the Bank of England has to be ready as monetary authority, throughout that period to respond to any instability created by that uncertainty and to ensure that the economy continues to operate smoothly”, he said.
