The US is preparing to lead the G20, focusing on central bank independence after a consensus reached in Durban's meetings. The G20 finance ministers, after multiple failed joint statements, agreed on essential global economic challenges like conflicts, trade disputes, and supply chain issues. Central banks reaffirmed their commitment to price stability, stating that policy adjustments would be data-dependent. This communique, the first since October, underscores the importance of protecting central bank operations from political influence, especially in light of ongoing criticisms from President Trump regarding interest rate decisions.
The G20 finance ministers have reached a consensus emphasizing the need for central banks to remain independent in response to months of criticism from President Trump. In their joint declaration, they identified crucial global economic challenges including trade disputes, supply chain disruptions, ongoing wars, and natural disasters. This marked the first joint statement since last October, reflecting a collective commitment to policies aimed at ensuring price stability. They reiterated that adjustments would be made based on data, highlighting the importance of central bank independence.
Central banks are committed to achieving price stability and will adjust their policies in a data-dependent manner. The independence of central banks is considered critical for maintaining economic stability as outlined in the joint communique. The G20 finance ministers have acknowledged the influence of external factors such as trade tensions and conflicts on the global economic landscape.
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