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Central bankers optimistic on global economy

Davos - Central bankers voiced cautious optimism on Saturday about the global economy at this year's World Economic Forum, arguing that eurozone monetary policy and low oil prices would help countries around the world.

The massive asset-buying programme announced by the European Central Bank (ECB) this week as a stimulus policy was of global significance, given that the eurozone is the world's biggest economic unit, Japan's central bank chief Haruhiko Kuroda said on the last day of the Davos conference.

"That would greatly improve the world economic outlook," he said, pointing to the ECB's target of boosting recovery.

The boon brought by cheaper oil was also helpful, but by no means guaranteed, they said.

"It's realistic to expect - it doesn't mean it will happen - that oil is lower for longer," said Mark Carney, Britain's chief central banker.

The low oil price, which has dropped 50% in the past months, would make it easier for emerging markets to carry out policies that will make them more competitive when it comes to productivity and technology, said Joaqim Levy, Brazil's finance minister.

"The benefit of low energy prices will make this transition easier for a lot of us," he said.

The financial leaders also said that the slowdown in China's economic growth was no reason for great concern, pointing instead to the more positive development of growing Chinese consumer demand.

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