Xi urges action to reduce fallout of rate hikes
President Xi Jinping on Tuesday asked wealthy G20 nations to contain the fallout from interest rate hikes, as the US Federal Reserve moves aggressively to fight inflation. "We must contain global inflation and resolve systematic risks in the economy and finance," Xi told a summit of the 20 major economies taking place in Bali. "Developed economies should reduce the negative spillover effects of their monetary policy adjustments and stabilise debts at a sustainable level," he said. The Federal Reserve has raised interest rates to their highest level since before the 2008 financial crisis as it seeks to tighten money supply in an effort to wrestle back inflation. The US monetary stance has pushed the dollar up to levels not seen in two decades, causing distress for developing economies that rely on exports or that are trying to curb inflation themselves. Xi also said international financial institutions and commercial creditors – the main creditors of developing countries – should take part in the debt reduction and suspension for developing countries. He added Beijing is implementing the G20's Debt Service Suspension Initiative, and has suspended the largest amount of debt service payment among all G20 members. Xi was addressing the summit a day after meeting US President Joe Biden. The two leaders both indicated they would like to ease tensions that have soared in recent months. (AFP/Xinhua)