Woods said that loose monetary policy
and chances for rate cuts by the US Federal Reserve have helped factors that could prevent a severe economic downturn.
Yang cited major forecast reports, which expect the rate of Consumer Price Index (CPI) inflation to hover between 0.73 percent and 1.39 percent for 2019, to say that the bank will continue to properly control the money supply through open market operations to ensure a moderately loose monetary policy
"While the overall low level of inflation in the EM10 can justify loose monetary policy
on domestic grounds, our analysis suggests that monetary policy appears overly loose relative to this point in the cycle", said Maxime Darmet, Associate Director, in Fitch's Economics team.
"RBI may choose to stand pat and see through the effect of the loose monetary policy
which it practiced over the last 2 years," Kapoor noted.
"Most highly developed economies, except the USA and possibly Britain, will continue to need a loose monetary policy
, but all countries in this category should comprehensively factor spillover effects into their decision-making," Lagarde said.
Together with low interest rates, this loose monetary policy
is designed to ease credit conditions and prop up the recovery.
Loose monetary policy
kept many in high-risk assets too long.
However it seems that investors are finally starting to agree that loose monetary policy
can not go on forever and good economic news from the US can only really be a good thing in the long term.
Fed will maintain its current loose monetary policy
longer than expected.
London: Central banks can't expand loose monetary policy
without exacerbating risks to world economies, the Bank for International Settlements (BIS) said."Central banks cannot do 'whatever it takes' to return still-sluggish economies to strong and sustainable growth," Stephen Cecchetti, economic adviser and head of the monetary and economic department at the BIS in Basel, Switzerland, told reporters on a conference call.
Despite the positive market impact, analysts warned that the G-7 statement changed little in concrete terms, since any country could claim that its loose monetary policy
was used to help the domestic economy, not set the interest rate.