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PARIS, Dec 5 (Reuters) - Economic growth could revive during the course of 2009 thanks to the combined effects of bank rescue plans, interest rate cuts, stimulus plans and lower inflation, the Bank of France said on Friday.
The central bank said in a note that it expected a marked fall in inflation to improve households' purchasing power, which should give a boost to consumer spending.
"Consolidation of the banking system, rate cuts, stimulus measures, all of these steps are being taken in a coherent manner in order to avoid the mistakes of the past," it said.
"For the past few months we have seen a reversal of the oil and food shock that had strongly hurt economic growth in the first half of the year. We can now foresee a marked slowdown of inflation that should spontaneously give extra spending power to households, thus contributing to a possible revival of consumer spending.
"Considered globally, these evolutions are capable of stabilising the economy, minimising the cost of the banking crisis and allowing a revival of growth in the course of 2009." (Reporting by Estelle Shirbon; Editing by David Stamp)