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C.bank exit strategies key as GDP improves-Trichet

Published 05/11/2009, 07:40 AM
Updated 05/11/2009, 07:48 AM

BASEL, Switzerland, May 11 (Reuters) - The global economy is about to turn the corner as some countries already see growth, and central banks should have exit strategies to avoid inflation risks, leading central bankers said on Monday.

After chairing regular talks on the global economy, Jean-Claude Trichet also warned that central banks must remain alert as the correction of global imbalances is still continuing and uncertainty surrounds the world economy.

"The global economy is around the inflection point with some being beyond the inflection point," Trichet, who is also the president of the European Central Bank, told a briefing.

"Being fully aware of... exit strategies, or the path to sustainable mode, is absolutely of the essence... Every central bank has its own way of dealing with going back to the appropriate policy that would permit to avoid any inflationary risks."

Trichet was speaking after the regular bi-monthly gathering of central bankers at the Bank for International Settlements in Basel, which was attended by leading officials from developed and emerging economies.

(Reporting by Natsuko Waki, Sven Egenter and Tamora Vidaillet; editing by David Stamp))

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