Plunging share prices and currency turbulence are being caused by the go-it-alone approach of rich and developing countries, a senior Bank of England official said yesterday as he called for policymakers to think about the needs of the entire global financial system. In what will be seen as an implicit criticism of the US Federal Reserve, Andy Haldane , the bank's executive director for financial stability, said the lack of co-ordination reflected a failure to learn the lessons of the crash of 2007-09. "Individual countries act in their own best interests without taking into account the broader best interest of the financial system as a whole," said Haldane, amid concerns the sharp sell-off in markets this year marks a new phase in the crisis. The FTSE 100 index of leading UK shares closed down for the 10th day out of the last 11 trading sessions following a drop of more than 4% in Japan's benchmark stockmarket index overnight. Wall Street opened on a brighter note in the wake of a drop of more than 300 points on Monday, with the Dow Jones up by almost 100 points by lunchtime in New York . "What is going on with the head-to-head combat is people pursuing policies of individual countries," Haldane said in a speech at the University of Oxford . "What is at stake is the system as a whole." His remarks chime with criticisms made by India's central bank governor, Raghuram Rajan , last week. "International monetary co-operation has broken down," Rajan told Bloomberg TV India. "Industrial countries have to play a part in restoring that, and they can't at this point wash their hands off and say we'll do what we need to and you do the adjustment."
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