G7 central bank chiefs also vowed to combat “elevated” inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation.
“We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook.” Japanese Finance Minister Shunichi Suzuki told a press conference after chairing the meeting that the debt ceiling showdown was discussed at Thursday's dinner session on the global economy. He declined to elaborate.
Many central banks face an inflection point, with aggressive interest rate hikes beginning to cool growth and unsettling the banking system. The group reiterated its condemnation of Russia's invasion of Ukraine and pledge to strengthen monitoring of cross-border transactions between Russia and other countries.
The new scheme envisages the G7 offering aid to low- and middle-income countries so they can play a bigger role in supply chains for energy-related products, such as by refining minerals and processing manufacturing parts.