|
BERLIN, April 6 (Reuters): High oil prices and growing global current account deficits are an "increasing downwards risk" for the world economy, IMF chief Rodrigo Rato was quoted yesterday as saying.
"High oil prices are an increasing downwards risk. The same applies to the growing global current account deficits, the gap with growth and savings rates," Rato said in an interview with Germany's Handelsblatt business daily.
"This year, the high oil price will again reduce global economic growth by at least 0.25 to 0.5 percent," he added.
Rato also said the fund had sharply revised up its estimate for the average cost of a barrel of oil in 2005 to $51.90 from $46.50.
Last year, the world economy grew by 5 percent.
Oil prices in the United States hit a record high of over $58 per barrel on Monday, but fell below $56 on Tuesday.
Rato said increased global demand was chiefly responsible for the latest rise in oil prices.
The IMF boss also said current low interest rates in the euro zone should be maintained.
"The current incentives in monetary policy should be maintained and not reduced," he said.
The European Central Bank's benchmark rate has been at a record low of 2.00 percent for more than a year and a half.
|