NEW YORK, September 26, 2012 — Central banks are unlikely to pull back from the more prominent role they have carved out for themselves following the financial crisis, according to a new BNY Mellon-sponsored report from the Economist Intelligence Unit (EIU), The Search for Growth: Central Banks in Uncharted Territory. The report says this dynamic has less to do with the recent crises and lack of government action than with the challenge of managing the growing complexity of the global financial markets.

The report examines the implications of the expanding role of central banks by comparing the opinions of nine prominent economists, analysts and portfolio managers. Although these experts disagree on where to place the blame for the current crisis and on their critiques of central bank policies, they agree on the following additional points:

• Most experts give central banks high marks for tempering what could have been a far worse global financial crisis in 2008.
• They believe that the central bank efforts have provided breathing room for governments to reach agreement on measures that would build a stronger and more durable long-term economic recovery.
• While monetary easing will provide some relief, experts agree that central banks cannot restore a healthy global economy by themselves. Solutions require political compromises that are not within central banks' powers to devise.

"While there is widespread disagreement on the root causes of the financial crisis, the report highlights a strong consensus on the positive impact central banks' actions have had and the likelihood of further interventions as economies and financial markets globally inch toward a sustained recovery," said Jai Arya, global head of the Sovereign Institutions group at BNY Mellon.   

"Over the last four years central banks have pushed - but not broken - the limits of their mandate in order to respond to the continuing weakness of the global economy. However, monetary easing is no panacea. Many solutions require political compromises that are not within central banks' powers to devise," says Annabel Symington, Deputy Editor, Economist Intelligence Unit.

The Search for Growth: Central Banks in Uncharted Territory is a byproduct of BNY Mellon-sponsored EIU research examining the prospects for economic and market growth from the perspective of both institutional investors and corporate executives. Based on a global survey of almost 800 respondents carried out in January 2012, and a series of in-depth interviews with leading investors and experts, the research explores the potential for growth across a wide range of sectors, regions and asset classes. It also explores the likelihood and potential impact of a range of both positive and negative scenarios.

The Search for Growth: Central Banks in Uncharted Territory is available at http://www.bnymellon.com/foresight/searchforgrowth.html.

The Economist Intelligence Unit (EIU) is the world's leading resource for economic and business research, forecasting and analysis. It provides accurate and impartial intelligence for companies, government agencies, financial institutions and academic organizations around the globe, inspiring business leaders to act with confidence since 1946. EIU products include its flagship Country Reports service, providing political and economic analysis for 195 countries, and a portfolio of subscription-based data and forecasting services. The company also undertakes bespoke research and analysis projects on individual markets and business sectors. More information is available at www.eiu.com or follow us on www.twitter.com/theeiu

The EIU is headquartered in London, UK, with offices in more than 40 cities and a network of some 650 country experts and analysts worldwide. It operates independently as the business-to-business arm of The Economist Group, the leading source of analysis on international business and world affairs.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations, central banks and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team.  It has $27.1 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.5 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available on www.bnymellon.com or follow us on Twitter@BNYMellon.