G7 finance chiefs address global economic uncertainty as US debt crisis looms

NIIGATA, Japan, May 13 (Xinhua) -- Group of Seven (G7) finance chiefs on Saturday warned of heightened uncertainty and vowed to take actions to ensure financial stability amid concerns following U.S. bank failures.

Workers install a welcome signboard near the venue for the Group of Seven (G7) Finance Ministers and Central Bank Governors' Meeting in Niigata, Japan, on May 10, 2023. (Photo: AFP)

In a joint statement issued after their meeting in the Japanese city of Niigata, the G7 finance ministers and central bank governors said they "need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook."

The three-day gathering that concluded on Saturday was overshadowed by concerns about the U.S. debt ceiling deadlock, which was made no mention of the statement.

"We will continue to work closely with supervisory and regulatory authorities to monitor financial sector developments and stand ready to take appropriate actions to maintain financial stability and the resilience of the global financial system," said the statement.

G7 central bank chiefs also vowed to fight elevated inflation and ensure inflation expectations remain well anchored, according to the joint statement.

The Japanese central bank will persist with monetary easing because inflation, currently above its target, will start to slow later this year, Bank of Japan Governor Kazuo Ueda, who took the helm in April, was quoted as saying at the G7 gathering by national news agency Kyodo on Saturday.

The meeting was held in the runup to the G7 leaders' summit in Hiroshima from May 19 to May 21.