The OECD forecast on Monday that growth of the world's most industrialised economies would accelerate in the first half of year, but highlighted a number of risks and warned central bank governors about precipitous interest rate hikes.
In particular, the chief economist at the organisation, Jean-Philippe Cotis, urged the Bank of Japan to wait "a little longer" before increasing interest rates amid feverish speculation about when the Japanese central bank will move.
Giving forecasts for the Group of Seven countries, the world's most industrialised economies, the OECD said that economic growth would be 0.8 percent in the first quarter and 0.7 percent in the second quarter after a slowdown in the final quarter of 2005.
"Against the background of high and volatile energy prices but still intriguingly low long-term interest rates, activity is estimated to have re-accelerated," Cotis said in a statement.
In the eurozone, growth was forecast to be 0.6 percent in the first and second quarter after 0.3 percent in the final quarter of 2005. Growth in the US is expected to be 1.1 in the first quarter and 0.9 percent in the second quarter.
Like the Bank of Japan, Cotis warned the European Central Bank against raising interest rates too quickly.
He advised that any further hikes, following a decision to raise rates by 25 basis points last week, should only be taken "based on unambiguous signs that slack is shrinking and that underlying inflation pressures are mounting".
Economic growth in Japan was forecast by the OECD to reach 0.7 percent in the first quarter and 0.5 in the second quarter.
Commenting on the widely expected decision on interest rates in the country, Cotis said: "It is necessary to wait a little longer before raising short-term rates."
After eight years of deflation, the Bank of Japan has given signals recently that it is preparing to raise interest rates and put an end to its ultra-loose monetary policy.
Some economists believe the bank could even announce a decision to hike rates at the end of a two-day meeting on Thursday.
In the US, the OECD, or Organisation for Economic Co-operation and Development, said that "there may be a case for limited further tightening" of interest rates.
Commenting on risks for the global economy, Cotis identified both overheated housing markets in some countries, one of the motors of economic growth in recent years, and high oil prices.
"Some of the factors that have thus far sustained buoyant overall growth may no longer do so further out ... One source of risk in this regard stems from stretched valuations in some housing markets," he said in a statement.
In later comments, he said that high oil prices, which surged in 2005 and remain above 60 dollar a barrel, represented a "significant risk" for the global economy.
"There is a whole series of latent risks that we hope will not materialise," he said, adding that the trade and current account deficits of the United States were among the most serious dangers.
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