To foster confidence, monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone can not lead to balanced growth, state-run Xinhua quoted the communique as saying.
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Envoys of the Group of 20 major economies also rejected trade protectionism, an issue that has risen in prominence as U.S. Republication presidential candidate Donald Trump stirs unease with talk about restricting access to American markets.
The draft, which is subject to change before it is expected to be issued at the end of the meeting on Sunday afternoon, said Brexit added to uncertainty in the global economy but G20 members were “well positioned to proactively address the potential economic and financial consequences”.
She claimed that post-referendum market turmoil had prompted the International Monetary Fund to cut its forecast of this year’s global growth by 0.1 percentage point.
The British finance minister made the remarks on the sidelines of the G20 meeting of leading world economies in an interview with the BBC and Sky News on Sunday in the Chinese city of Chengdu.
The Chinese Ministry of Commerce has already expressed its willingness to do a post-Brexit deal with the United Kingdom, and Chancellor of the Exchequer Philip Hammond, speaking to the BBC at the meeting of G20 finance ministers in Chengdu, said that he could “definitely” see a trade deal with Beijing becoming a reality.
“The G20 member countries have located the highest common divisor in terms of the important fields and principles of the reforms and identified the priorities and guiding principles of the reforms”. Many countries are anxious that a long delay could add to uncertainties that are dragging on the world economy.
He said data in the autumn, including the first full-quarter growth figures since the Brexit vote, would help policymakers “reach a proper conclusion as to whether a fiscal stimulus is required” ahead of such a deal.
Data on Friday seemed to bear out fears, with a British business activity index posting its biggest drop in its 20-year history. “The sooner the better so this generates a new equilibrium”, Italian Economy Minister Pier Carlo Padoan told Reuters. Several Ministers urged Britain and the European Union to move quickly to resolve Brexit issues.
“At the same time, there are very exciting opportunities opening up with China, with Australia, with India, and with many other countries” he said. Brexit blueprint will calm markets.
“If you ask me whether a weakening yuan is a good thing for China, I can not say so”, he told reporters.
Markets are speculating about a further expansion of the Bank of Japan’s massive stimulus program at a July 28-29 policy review, with the yen’s strength this year hitting exports and undermining efforts to escape deflation.
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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.
