Central bankers 'aim to protect growth' following G-7 call

11 August 2011

Central bankers around the world are attempting to encourage growth by protecting their economies from the effect of fiscal tightening.

Industry bodies have put a number of strategies into place in the days since a Group of Seven (G-7) conference call was held to address the problem, Bloomberg reports.

The US Federal Reserve - chaired by Ben Bernanke - has revealed it is to maintain interest rates at near zero until the middle of 2013 at the very least, while the European Central Bank has involved itself with bond markets and the Bank of England said it would be willing to offer greater stimulus should it be required.

Stefan Schneider, chief international economist at Deutsche Bank in Frankfurt, said: "Central bankers have so far been the tower of strength. Lawmakers have done everything to destroy belief in their ability to solve the problems they're facing."

Meanwhile, Switzerland and Japan have both raised concerns regarding their respective currencies and the Bank of Korea has kept interest rates unchanged for a second successive month.

By Claire Archer

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