The OECD has called on the European Central Bank to cut its interest rate further in order to help economic activity in the euro zone.
The Paris-based group made the call today after forecasting that economic activity was set to contract by 0.1% this year.
It said the EU should take bloc-wide measures to boost growth and ease fiscal adjustment in the euro zone where crisis risks are intensifying.
It called for a “further easing in the euro area” despite the ECB having official rates at a record low of 1% following back-to-back rate cuts of 0.25% each in November and December of last year.
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The OECD said that “credibility and confidence would be enhanced by euro area and EU-wide measures.”
