OECD Reduces Expectations for Economic Growth

A report released today by the Organization for Economic Cooperation and Development (OECD) says that it has reduced its expectations for economic growth in 2005. The OECD reduced its economic growth forecast for the industrialized world to 2.6% from 2.9%. It did raise its growth forecast for the U.S. from 3.3% to 3.6%. The OECD said that interest rates in the United States will go up in order to keep inflation pressure at bay, but Europe needs a "rapid rate cut". The OECD cut its growth outlook for the Euro-area, from 1.9% to 1.2%. It also cut its growth outlook for Japan. It now expects 1.5% as opposed to its previous 2.1% estimate. Reuters latest ebusiness news