Leaders of the world’s biggest economies agreed to pace their interest-rate hikes despite surging inflationSingapore's Prime Minister Lee Hsien Loong, European Council President Charles Michel, Dutch Prime Minister Mark Rutte, World Bank Group President David Malpass, German Chancellor Olaf Scholz, Spain’s Prime Minister Pedro Sanchez, Japan’s Prime Minister Fumio Kishida and World Health Organisation director-general Tedros Adhanom Ghebreyesus attend a mangrove planting event at the Ngurah...
“G20 central banks ... are closely monitoring the impact of price pressures on inflation expectations and will continue to appropriately calibrate the pace of monetary policy tightening in a data-dependent and clearly communicated manner,” said the statement signed after a two-day G20 summit held in Bali.
The emphasis on the need to fight inflation contrasted with the G20 statement last year, which said central banks must avoid overreacting to transitory rises in inflation. An abrupt, sharp rise in inflation, driven by increasing commodity and fuel costs, caught many central banks off guard and forced them to shift gear towards rapid monetary tightening.
“It may not happen everywhere, but several key countries risk sliding into recession,” said WTO director-general Ngozi Okonjo-Iweala.