OECD raises global growth forecast for 2017

The Organization for Economic Co-operation and Development (OECD) published its latest forecast report, sounding upbeat on the global economic growth see for \next year.

Key Forecasts:

2016 GDP unch 2.9%

US GDP 1.5% vs 1.4% prior 2016. 2.3% vs 2.1% prior 2017

EZ 1.7% vs 1.5% prior 2016. 1.6% vs 1.4% prior 2017

Japan 0.8% vs 0.6% prior 2016. 1.0% vs 0.7% prior 2017

UK 2.0% vs 1.8% prior 2016. 1.2% vs 1.0% prior 2017

China 6.7% vs 6.5% prior 2016. 6.4% vs 6.2% prior 2017

Key Quotes on BOJ:

“The Bank of Japan should maintain monetary easing, as intended, until inflation is stable above the 2 percent target, while taking account of costs and risks in terms of possible financial distortions”

Key Quotes on the US economy:

“The extent to which the fiscal program set out by the new administration during the election campaign is implemented will not become clear for some time, as agreement by Congress will be required to introduce necessary legislation and in some areas, notably tax reform, complex legislative changes may be needed”

“Nonetheless, it seems likely that there will be some easing of fiscal policy over the next two years, with implications for growth prospects and inflation in the United States and other economies.”

Key Quotes on RBA:

"Monetary policy tightening is expected to commence towards the end of 2017 and this is appropriate given likely monetary policy developments elsewhere"