OECD warns of 'ominous' risks to world economy

by liamssoft | September 5, 2007 at 05:12 am

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Economic prospects in the US, Europe and Japan have become less buoyant and more uncertain, US growth is likely to be weighed by a weaker housing sector while activity in the Euro area and Japan should pick up after the second quarter slowdown said OECD chief economist Jean-Philippe Cotis.

The west's leading economics thinktank today called for an immediate cut in US interest rates as it warned that the fallout from the housing crisis could trigger a recession in the world's leading economy.

In an update to its half-yearly forecasts for the global economy, the Paris-based Organisation for Economic Co-operation and Development said the Federal Reserve should cut the cost of borrowing by a quarter-point and called on central banks in the Eurozone and Japan to shelve plans for higher rates.

Nowpublic related Fresh warnings on housing costs