OECD Urges for Rapid Action as it Slashes Growth Forecasts

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Kamis, 07 Juli 2016

OECD Urges for Rapid Action as it Slashes Growth Forecasts

The Organization for Economic Cooperation and Development (OECD) calls for urgent action from world leaders to fight against the slowdown in growth.
call came as the think tank reduced its global economic forecast for 2016.
last year, it foresees a growth of 3.3% in 2016. He now says that it will be only 3%.

He said trade, investment and wage growth were too low, adding that the reduction in interest rates and other monetary policy corrections are not sufficient to restore growth.

interest rates in many parts of the world were cut to try to stimulate borrowing and investment. Prices in many countries, including the UK, are at their lowest.

The US in particular has raised rates by end of last year ribbon. This was designed to calm the nerves of investors, but for many it now seems like a prematurely optimistic movement.

The negative rate
The OECD has now reduced its growth forecast for the US to 2% from the 2.5% it had predicted last November, a month before the rate of country's interest has increased.

In Europe, Japan and Switzerland, the rates were cut to negative, meaning that depositors are paying the bank to keep their money.
The OECD, a Paris-based think tank financed by rich countries, said: "Monetary policy can not work alone

." a stronger response to the collective policy is needed to strengthen demand "

through. BBC

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