ANKARA, Sept 5 (Reuters) - World financial leaders agreed on Saturday that over reliance on cheap cash from loose central bank monetary policy will not lead to balanced economic growth and that as activity picks up, interest rates would have to rise.
The formulation of the final communique of finance ministers and central bank governors from the world’s top 20 economies defies pressure from emerging market countries to brand an expected rate rise in the United States as a risk to growth.
“Monetary policies will continue to support economic activity consistent with central banks’ mandates, but monetary policy alone cannot lead to balanced growth,” the G20 communique said.
“We note that in line with the improving economic outlook, monetary policy tightening is more likely in some advanced economies,” the statement said. (Addijtional reportin by Randall Palmer and Nick Tattersall in Ankara; Writing by Jan Strupczewski)