ABC - Current Industry News

Global economic growth is robust and improving financial markets mean some policy stimulus can be withdrawn, top central bankers agreed Monday.

But European Central Bank President Jean-Claude Trichet, speaking as chair of talks on the global economy at a Bank for International Settlements meeting, said investors should not interpret the phasing out of non-standard measures as a signal for interest rate rises....

Central bankers attending the talks, who included People's Bank of China chief Zhou Xiaochuan and Bank of Japan Governor Masaaki Shirakawa, were also united in urging governments to bring public finances into line, Trichet said. As economies recover from the crisis, major central banks have started to withdraw crisis measures introduced to support growth and Trichet said investors should not read into this any signal for rates, which remain at record lows in many regions.

The market is improving, so that we can phase out the non-conventional measures without over-interpretation of this phasing out, and without this influencing the market sentiment, and without giving the signal that we are changing the monetary policy stance, he said.

Positives for growth included rebuilding of inventories, a revival in global trade and an easing in global trade imbalances, although it was difficult to say whether this was permanent or not, Mr. Trichet said.