OECD calls for further ECB rate cuts

OECD calls for further ECB rate cuts

Despite a record low interest rate of 1%, the OECD has urged the ECB to cut rates further to promote growth in the euro zone

The OECD has called on the European Central Bank to cut its interest rate further in order to help economic activity in the euro zone.

The Paris-based group made the call today after forecasting that economic activity was set to contract by 0.1% this year.

It said the EU should take bloc-wide measures to boost growth and ease fiscal adjustment in the euro zone where crisis risks are intensifying.

It called for a “further easing in the euro area” despite the ECB having official rates at a record low of 1% following back-to-back rate cuts of 0.25% each in November and December of last year.

The OECD said that “credibility and confidence would be enhanced by euro area and EU-wide measures.”

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