OECD raises 2017’s to 3.3% from 3.2% - UOB

Analysts at OUB Group noted recent developments on a macro and central bank theme.

Key Quotes:

"The Organisation for Economic Co-operation and Development (OECD) maintains 2016 global GDP forecasts at 2.9%, raises 2017’s to 3.3% from 3.2% and sets 2018’s at 3.6%. The organisation sees the Fed raising interest rates gradually to 2.0% by end-2018.

ECB Governor Draghi said that the meeting in Decemberwill assess options to preserve very substantial degree of accommodation needed to bring inflation to its target, and
also the programme sufficiently flexible that can be revisited to maintain monetary accommodation.

BOE’s Vlieghe said inflation boost from exchange rate ultimately will fade and that there is no appetite in MPC for higher interest rates at the moment."