BASEL, Nov 7: G10 central bankers maintained their forecast of “robust” global economic growth on Monday but warned about the risk of inflationary pressures, European Central Bank chief Jean-Claude Trichet said.
Mr Trichet was speaking in his capacity as chairman of the G10 group of leading central bankers, after their regular meeting here under the aegis of the Bank for International Settlements (BIS).
Asked if the bankers were maintaining their target of four per cent growth in the world economy this year, Mr Trichet declined to give any figures, adding: “But global growth still remains robust.”
However, he emphasized that the central banks remained focused on the risk of inflation, amid signs of shifts in the prices of some manufactured goods and services.
“It is very important to keep confidence in the central banks,” Mr Trichet said, adding that it was “essential” to keep tabs on inflation.
The ECB chief listed four major risks that could upset the world economy, including high oil prices, “global imbalances”, protectionism, and the over-optimistic behaviour of financial markets.
Mr Trichet said there was a “general underestimation of risk by financial markets”, and high energy prices still cast a shadow over the global economy.
However, the economic impact of Hurricanes Katrina and Rita in the US is likely to be very small and temporary, he added.—AFP
