Italy’s Saccomanni Says G-7 Monitoring Impact of Monetary Policy

Italian Finance Minister Fabrizio Saccomanni said Group of Seven countries are on the watch for any negative spillovers from loose monetary policy.

Saccomanni, speaking in an interview with Bloomberg Television, said that while currencies weren’t specifically discussed at a meeting today of G-7 officials, there was broad agreement that recent stimulus efforts by central banks are aimed at bolstering growth and not weakening currencies.

“There is broad convergence that these monetary policy actions are mostly designed to meet domestic objectives,” Saccomanni said following a meeting of G-7 finance ministers at Aylesbury near London. “There is close attention that there are no unintended consequences on other countries both via capital flows or exchange rate movements.”

Global finance chiefs today reaffirmed their commitment not to manipulate currencies, even as their central banks ramp up stimulus measures to revive growth. The yen this week fell beyond 100 per dollar for the first time since 2009, extending a decline fueled by more aggressive monetary policy from the Bank of Japan.

Saccomanni also said G-7 officials endorsed Italy’s budget plans, which includes reducing the deficit while looking for ways stimulate growth.

“There was a broad support for the fact that we plan to continue with this policy of fiscal consolidation and trying to exit the excessive deficit procedure of the European Union,” Saccomanni said, while also using “whatever room of maneuver there is to support growth and particularly reduce unemployment among the youth.”

To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net; Lorenzo Totaro in Rome at ltotaro@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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