G7 looks to central banks to prop up growth

Thu May 9, 2013 7:01pm EDT
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* UK's Osborne to host two-day meeting of finance ministers

* Central bank action to boost world economy high on agenda

* Bank regulation and tax avoidance also up for discussion

* Some officials question point of meeting just after IMF

By David Milliken and William Schomberg

LONDON, May 10 (Reuters) - Many of the world's most powerful finance chiefs will meet at an English stately home later on Friday to discuss if central banks can do more to bolster a fragile global recovery.

The finance ministers and central bank governors from the Group of Seven industrialised economies look unlikely to break new ground on fixing the weak world economy, as a meeting at the International Monetary Fund took place just three weeks ago.

But Britain's finance minister George Osborne, who chairs the talks, is keen for his peers to focus on what more central banks can do to help growth at a time when most governments are trying to cut spending and raise taxes.

"(This is) an opportunity to consider what more monetary activism can do to support the recovery, while ensuring medium-term inflation expectations remain anchored," Osborne said.   Continued...