Group of Seven (G-7) finance chiefs have warned of heightened uncertainty and vowed to take actions to ensure financial stability amid concerns following U.S. bank failures.
In a joint statement issued after their meeting in the Japanese city of Niigata, the G-7 finance ministers and central bank governors said.
“There is need to remain vigilant, stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook.’’
The three-day gathering that concluded on Saturday was overshadowed by concerns about the U.S. debt ceiling deadlock, which was made no mention in the statement.
“We will continue to work closely with supervisory and regulatory authorities to monitor financial sector developments and stand ready to take appropriate actions to maintain financial stability and the resilience of the global financial system,’’ said the statement.
G-7 central bank chiefs also vowed to fight elevated inflation and ensure inflation expectations remain well anchored, according to the joint statement.
The Japanese central bank will persist with monetary easing because inflation, currently above its target, will start to slow later this year.
Bank of Japan Governor, Kazuo Ueda, who took the helm in April, was quoted as saying at the G-7 gathering by national news agency Kyodo.
The meeting was held in the run-up to the G-7 leaders’ summit in Hiroshima from May 19 to May 21.
