ZURICH (AFX) - G10 chairman Jean-Claude Trichet said global economic growth remains "quite dynamic", but uncertainties stemming from rising oil prices, global imbalances and protectionism are also on the increase.
"We have the sentiment that the global economy is growing at a robust pace," Trichet was quoted as saying by Agence France-Presse.
Moreover, a slight slowdown could be on the cards for next year, he said.
Trichet said that the turbulence (on equity markets) in May have been "rounded quite rapidly" and that we are currently back at a "pre-turbulence situation".
Regarding inflation, the bankers agreed that there is no room for complacency, he said.
Trichet said that besides watching the risks from oil prices and protectionism, central bankers were also concerned about prices.
"We had some meditation on the prices of manufactured goods
which have a tendency to go down and commodity prices which have a tendency to increase," said Trichet.
"It's very important for central bankers to have an overall overview of price evolution," he said.
Central banks have raised interest rates this year in an effort to tackle the spectre of oil price-related inflation, and further hikes are expected.
However, he said, there were increasing concerns that the impact
of high oil prices could be worse than expected.
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