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Monday, 9 March 2009

G10 says global economy "approaching" pick-up

BASEL, Switzerland : The global economy is "approaching" a pick-up point as positive elements that could fuel growth have yet to be priced in, G10 central bankers said Monday.

"We have a number of elements that are suggesting that we are approaching the moment where you would have a pick up," European Central Bank head Jean-Claude Trichet said in his capacity as spokesman for the G10 central bankers meeting at the Bank for International Settlements (BIS).

"I would say that we are at a level where the positives are not necessarily fully priced in," he added.

He did not specify a turning point but said central bankers would not depart from projections by global institutions, which are forecasting global momentum at close to zero this year before growth in 2010.

Trichet added that there was currently an under-estimation of the positive impact of sharply lower commodities and oil prices, as well as fiscal packages launched by governments.

He also pointed to a "very very strong commitment of authorities ... not to let any systemic institutions go under."

"This is a very very strong commitment which has been taken by executive branches which is not fully priced in by the market," he added.

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