Although the European economy is likely to expand steadily, growth may slow depending on the effect of volatile global financial markets on financial conditions. If these risks related to the U.S. and European economies were to materialize, this may, depending on the extent, affect growth of other economies such as emerging economies, and this could cause global economic growth to be weaker than expected.
The Working Group, co-chaired by the People’s Bank of China (PBOC, Dr. Li Bo) and the Reserve Bank of India (RBI, Dr. Viral V. Acharya), focussed on issues primarily related to the development of markets in bond and equity securities 2.