(AA) – FED will consider not only the U.S. markets, but also the possible implications of their interest rate policy in other economies before taking further steps, the head of Turkey’s Capital Markets Board said on Friday.
Speaking at the G20/OECD Corporate Governance Forum in Istanbul, Vahdettin Ertas said that the expectations for an interest rate rise by FED have recently created turbulence in the global capital markets.
“Therefore, we believe that FED will consider not only the U.S. markets, but also the possible implications of their interest rate policy in other economies before taking further steps,” Ertas said.
Representatives from G20 and OECD countries met in Istanbul on Friday to discuss how companies can manage risk. The Forum reviewed global trends in corporate risk management with specific interest in emerging markets.
He said that more than seven years after the financial crisis began, overcoming the legacies of the crisis remains high on the agenda of the global economy. “The challenge is to support economic growth and job creation, while reducing heavy national debt burden” he added.
Despite all measures taken, economic growth and inflation in the developed economies, notably in the EU, are still not at desired levels. Many countries could not come out of the recession in spite of their negative interest rate policies. Particularly, the youth unemployment rates have reached to 20-30 per cent levels in some economies.
Further development of corporate government is vital for countries seeking to attract investment, Ertas said.