G20 draft communique says monetary policy alone cannot bring balanced growth

Shanghai: A draft of the G20 communique seen by Reuters on Saturday says that monetary policy alone cannot bring balanced growth, as global finance leaders meet in Shanghai to try to agree on confidence-building measures for the world economy. 

The communique repeats previous pledges from G20 finance ministers not to engage in competitive currency devaluations, but adds a mention of the risk a "potential UK exit from the European Union" would pose to the world economy.

At the same time the draft suggests that markets` recent ructions have been overreactions to economic anxieties that do not reflect economic fundamentals.

"While recognising these challenges, we nevertheless judge that the magnitude of recent market volatility has not reflected the underlying fundamentals of the global economy," the draft said.