Group of 20 finance chiefs and central bankers said low interest rates could lead to a potential increase in financial-market risk, as major economies rely on monetary stimulus to bolster uneven growth.
“We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility,” the G-20 officials said yesterday in a communique released in Cairns, Australia. “We welcome the stronger economic conditions in some key economies, although growth in the global economy is uneven.”
The remarks reflect a patchy global economic recovery since a February G-20 meeting in Sydney. While the U.S. and U.K. economies have improved and stock markets gained, Europe risks slipping into deflation and concerns are mounting that China’s 7.5 percent economic growth target for 2014 is becoming harder to attain.