The heads of two of the world's leading central banks have expressed cautious optimism about the world economic outlook.

The president of the German Bundesbank, Hans Tietmeyer, said a global financial crisis as feared by many was unlikely.

His French counterpart, Jean-Claude Trichet, said the worst of the crisis triggered by the financial upheaval in south east Asia was now over.

He said the economic adjustment there and the plan by Japan to restructure its banking sector were encouraging signs.