The OECD cut its economic growth forecasts for 2005 in Britain and Germany on Tuesday but kept its forecast of 3.6 per cent for US growth.
It raised its 2005 GDP forecast for the euro zone to 1.3 from 1.2 per cent, cut Britain's outlook to 1.9 from 2.4 per cent and Germany to 1 from 1.2. But it raised Italy from -0.6 to 0.2 per cent and France to 1.6 from 1.4 per cent.
OECD chief economist Jean-Philippe Cotis said the Federal Reserve could continue to move US policy interest rates back towards neutrality, that Japan should leave them at zero, the the Bank of England could probably cut its rates and that the case for a very accommodative stance from the European Central Bank was strong.
The OECD, whose 30 member countries are mainly from rich, industrialised countries, was updating a few key GDP forecasts from the more complete forecasts it issues twice yearly in Economic Outlook.