The focus of the G20 finance ministers' and central bank governors' meeting to be held on the 15th in Bangkok, Thailand, will be inflation control and policy coordination. Correcting current-account imbalances and coordination on foreign exchange and monetary policy are expected to be key topics.
The G20 finance ministers' and central bank governors' meeting will be held on the 15th in Bangkok, Thailand. Against a backdrop of elevated crude oil prices and accelerating global inflation, policy coordination among countries is expected to be the focus. This article introduces the views of Asakawa Masatsugu (浅川雅嗣) and Maeda Eiji (前田栄治).
Asakawa Masatsugu (浅川雅嗣) emphasized the importance of the G20 as a framework dedicated to discussions on the economy and international finance, and pointed out that correcting current-account imbalances would be an appropriate key topic. He also addressed China's excess production problem and stated that persistent discussion would be necessary.
The background to the yen's decline even as the Japan-U.S. interest-rate differential narrows is said to include concerns over expansionary fiscal policy and the Bank of Japan's monetary policy. The importance of coordinated intervention to curb the rise in long-term U.S. interest rates was also mentioned. Views were presented on the appropriate form of policy coordination between the government and the Bank of Japan.
Maeda Eiji (前田栄治) pointed out that while the global economy remains resilient, fiscal concerns and corporate bond issuance related to data centers are factors driving up long-term interest rates. With Japan, the United States and Europe proceeding with rate hikes, he indicated that the Bank of Japan would look ahead to the risk of a policy shift while anticipating rate hikes every 3 months.