Col­lab­o­ra­tion amongst D-8 cen­tral banks stressed

The Pak Banker - - Front Page - Staff Re­porter

LAHORE: State Bank of Pak­istan (SBP) Gover­nor Yaseen An­war has stressed the need for con­tin­ued col­lab­o­ra­tion amongst the D-8 cen­tral banks to strengthen re­gional economies.

He said that macroe­co­nomic poli­cies of D-8 coun­tries must be bal­anced to check over­heat­ing pres­sures from strong re­cov­ery, high credit growth, volatile cap­i­tal flows, el­e­vated com­mod­ity prices, and re­newed risk of in­fla­tion. While chair­ing the sec­ond meet­ing of Cen­tral Bank Gov­er­nors of D-8 coun­tries economies on eco­nomic and fi­nan­cial co­op­er­a­tion,” he added.

He sug­gested that D-8 coun­tries must col­lab­o­rate and fo­cus on op­ti­mal use of mone­tary pol­icy tools which are at best the first line of de­fence against the global cri­sis. The D-8 coun­tries must col­lab­o­rate on how to re­bal­ance its growth model from ex­por­tled growth to di­ver­si­fy­ing de­mand through struc­tural changes in their economies that will en­able sus­tain­able fu­ture growth and make their economies less sus­cep­ti­ble to volatil­ity in other fi­nan­cial mar­kets, par­tic­u­larly by rais­ing do­mes­tic de­mand and re­cy­cling more of the D-8 coun­tries sav­ings into in­vest­ments at home.

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