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OECD Cuts Global Growth Forecast but Urges Fed Action This Week

Published 16/09/2015, 13:50

The global economic outlook has grown darker than it was only a few months ago, but the United States is doing well enough that its central bank should go ahead with its first rate increase since the financial crisis, the OECD said on Wednesday.

The world economy is set to grow 3% this year and 3.6% next year, the Paris-based Organisation for Economic Cooperation and Development said in an update of its forecasts for major economies.

The OECD saw more arguments in favour of the Federal Reserve raising interest rates than standing pat when its policymakers meet this week rather than at their next meeting at the end of the year.

The OECD slightly lowered its growth estimate for China to 6.7% for this year and 6.5% next year after a string of disappointing data and plunges on its stock market.

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