Easier monetary policy for some economies urged

Group of 20 finance chiefs agreed that uneven global economic growth means some nations need easy monetary policies as others move toward normalizing their settings, according to a draft communique obtained by Bloomberg.

It will be important for policymakers to communicate clearly as their stances diverge, in an effort to minimize "negative spillovers", finance ministers and central bank governors said in the draft document. While a global recovery is in progress, growth is slow "notably" in the euro area and Japan. The group welcomed the recent decision by the European Central Bank to start buying government bonds.

The group is gathering in Istanbul amid increasing volatility in currencies as prospects for monetary policy veer in different directions. A resurgent US job market is driving forecasts for higher interest rates this year, in contrast with Europe, Japan and major emerging markets including China.