Monday, European Central Bank President, Jean-Claude Trichet said the global economy is around the inflection point.

After chairing a regular meeting of central bankers at the Bank for International Settlements in Basel, Trichet added that they should remain very alert as the correction of global imbalances is still continuing.

Last week, the ECB had reduced its benchmark interest rate to a new low of 1%. At his press conference accompanying the ECB's decision, Trichet said the central bank plans to buy euro-denominated covered bonds, joining the Federal Reserve and other central banks in buying debt under their quantitative easing policies.

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