The OECD said this morning it sees no case for raising Japanese interest rates at the moment or for renewing US rate increases.
It said the inflation outlook in the euro zone looked benign but stopped short of offering a clear rate recommendation.
In an update to its November forecasts, the Organisation for Economic Cooperation and Development predicted euro zone growth of 0.6 per cent quarter-on-quarter in both the first and second quarters of 2007, Japanese growth of 0.5 per cent in both and US growth of 0.5 and 0.6 per cent respectively.
Those forecasts follow growth last year which it estimates to have been 3.3 per cent in the United States, 2.8 per cent in the euro zone and 2.2 per cent in Japan, the latter ending far short of a previous OECD prediction of 2.8 per cent.
"In the euro area, accommodation has been largely withdrawn over the past few months, consistent with higher-than-expected growth," it said. The ECB raised rates last week, to 3.75 per cent from 3.5.
"With inflation having recently surprised on the downside, the outlook for price stability looks fairly benign," it said.