G-7 Meeting May Focus on Interest Rates

Pressure for higher interest rates in the United States and Europe is likely to be the primary topic at a Group of Seven meeting in Tokyo starting Saturday, International Monetary Fund chief Michel Camdessus said. In an interview with France’s Europe 1 radio, Camdessus was asked about strong growth in the U.S. and Europe, where investors expect official interest rates to rise in the coming weeks.

“I can tell you that I will be in Tokyo . . . Saturday at the meeting of G-7 countries, and this will probably be the subject we talk about the most,” he replied. Last week, the Bank of England raised interest rates a quarter point to cool off Britain’s booming economy. The European Central Bank, which meets this week, and the U.S. Federal Reserve, which meets early next month, are expected to follow suit. Finance ministers and central bankers from the United States, Japan, Germany, France, Britain, Italy and Canada will attend the Tokyo gathering.

* Before arriving at the G-7 meeting Saturday, U.S. Treasury Secretary Lawrence Summers will visit India and Indonesia this week to survey Asia’s economic landscape now that the region is emerging from its worst financial crisis in 50 years. Summers will visit Bombay, New Delhi and Bangalore in India, and Jakarta, Indonesia, to meet with government officials and business leaders. Summers was scheduled to address the Confederation of Indian Industry in Bombay today.