arenas_11
05-24-2005, 07:12 PM
The Organisation for Economic Co-operation and Development indied reforms and lower rates of interest to take care of slow growth in the euro zone. The ECB is holding the interest rate at two percent of the euro zone. It revised its forecast for US growth in 2005 to 3.6 percent from 3.3 percent. Its forecast for growth dropped from 1.9 percent to 1.2 percent. This implies, also supports a Merill Lynch poll, the euro might not last although the dollar could continue, the course it had taken for the past several decades.
Additionally, the OECD thought more interest rate rises in the united states will be essential to keep on decreasing the size of their funding shortage. The Federal Reserve is maintaining its federal funds rate and is forecast to keep on increasing the speed by roughly 25 basis points over the upcoming FOMC meetings. A gap in interest rates between the euro zone and the US could lead to strength for the greenback.
Additionally, the OECD thought more interest rate rises in the united states will be essential to keep on decreasing the size of their funding shortage. The Federal Reserve is maintaining its federal funds rate and is forecast to keep on increasing the speed by roughly 25 basis points over the upcoming FOMC meetings. A gap in interest rates between the euro zone and the US could lead to strength for the greenback.