Meeting of G-20 Finance Ministers and Central Bank Governors published by IMF. “Some emerging economies can afford to maintain current monetary policy settings or ease if downside risks materialize, while others may have to take measures to gradually tighten financial conditions. Some emerging economies should remain watchful of inflationary pressures and should not lower interest rates further. Policymakers in Brazil should begin unwinding monetary stimulus as the recovery proceeds to ensure inflation expectations remain well anchored. Room for monetary easing is also more limited where strong credit expansion continues, or where currencies are undervalued.”
