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BIS-HIGHLIGHTS-Central bankers welcome U.S. move on GSE

Mon Sep 8, 2008 4:33am EDT
 
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BASEL, Sept 8 (Reuters) - The U.S. government's move to seize control of two mortgage finance firms has clambered on to the agenda of central bankers from key industrialised and emerging countries, meeting at the Bank for International Settlements in Basel to discuss the global economic outlook.

Below are highlights of the central bankers' comments:

BANK OF JAPAN GOVERNOR MASAAKI SHIRAKAWA

"We welcome the moves by the U.S. authorities. We expect the action would lead to stabilise the U.S. MBS (Mortgage-Backed Securities) market, financial market and the international financial market."

POLAND'S CENTRAL BANK GOVERNOR SLAWOMIR SKRZYPEK

"I have mixed feelings (about the U.S. move on Fannie and Freddie) something between moral hazard and the importance of those banks in the American financial system and the probability of future potential failure."

On Poland:

"I am sure that we reached the (inflation) peak in August."

"It will be something around 5 percent."

"In our situation, inflation is still the measure, but we have to observe what happens with our GDP growth."

"There is an increase of concern on the growth side."

PEOPLE'S BANK OF CHINA GOVERNOR ZHOU XIAOCHUAN

"We are reading and studying the new policy but I guess that different people may have different responses. From my point of view I think this is positive.  Continued...

 
A customer looks at televisions for sale at a store which buys and sells second-hand items in Madrid October 9, 2008. REUTERS/Andrea Comas
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