Another crucial passage of the communiqué was devoted to the progress of the work that the G20 commenced immediately after the outbreak of the global crisis with the aim of constructing a new framework of rules for the financial system, to make it more resilient and less exposed to crises.
In such a case, it might appear to the casual observer that interest rates were being adjusted up or down for no reason. Taking together the approaching closing of the output gap and our understanding of recent soft inflation readings, today’s increase in interest rates is clearly warranted.