G20 puts growth before austerity, seeks to calm markets

Sat Jul 20, 2013 2:50am EDT
 
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* Fed stimulus withdrawal eyed warily at G20

* Communique commits to economic rebalancing, careful steps

* China allows banks to lend more cheaply

* Japan pressed on structural reforms

* Shift towards growth at expense of debt-cutting

By Tetsushi Kajimoto and Alessandra Prentice

MOSCOW, July 20 (Reuters) - The Group of 20 nations put growth ahead of austerity as it seeks to rebalance a multi-speed global economy, pledging to shift policy carefully so that recovery is not derailed by volatile financial markets.

Finance ministers and central bank governors meeting in Moscow on Saturday will put the finishing touches to a joint communique that delegates said was not changed after they met for dinner on Friday night.

Indications that the U.S. Federal Reserve would scale back its monetary stimulus were the focus of intense interest, especially from emerging economies hit by an ensuing selloff in stocks and bonds, and a flight to the dollar.   Continued...