Central banks ready to back the system, says Trichet

EUROPEAN Central Bank president Jean-Claude Trichet has said central bankers around the world are ready to support the banking system as the global economy slows.

“We don’t see a recession, not at all, but we see a slowing down in comparison with what has been observed,” Mr Trichet said.

Downside risks to the growth outlook have increased and “we stand ready to provide liquidity to banks as required”, Mr Trichet said. “It is a sentiment that we all expressed.”