News Headline Summary

OECD cuts 2012 and 2013 growth forecasts, sees risk of new major contraction in developed economies

- Japan needs credible medium term to cut deficit.
- Excessive fiscal consolidation should be avoided.
- ECB seen cutting refi by 25bps in December, Fed and BoJ on hold.
- Says ECB should cut rates as deflationary pressures grow.
- ECB could issue forward guidance on interest rates.
- Euro area banks need EUR 400bln in fresh capital.
- Calls for monetary easing in Europe, Japan, China and India.
- Fiscal cliff could trigger global recession.

Reaction details (10:09)

- Despite the OECD cutting their global forecast, no immediate reaction was seen across asset classes as this was largely expected.

Analysis details (10:07)

Full OECD report:

27 Nov 2012 - 10:00 - Fixed Income Economic Commentary - Source: Newswires

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