6/4/2010

Central banks from the Group of 20 are putting off withdrawing their stimulus measures as they wait to see how the European sovereign-debt crisis affects markets and the global economic recovery. Central banks worldwide have noted that investor sentiment regarding Europe's fiscal woes is an obstacle to increasing interest rates. "Given the increase in uncertainty in the economy, it would be perfectly natural for people to be less eager to tighten," said William White, a former chief economist at the Bank for International Settlements.

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