Oliver Mangan: Risk of overkill from the tough-talking US Fed

The OECD says its analysis shows that if the moves in commodity prices and financial markets seen since the outbreak of the war proved sustained, it could reduce global growth by over 1 percentage point in the first year and push up global inflation by 2.5 percentage points.

The Eurozone is set to grow at a minimum of 2.3% this year.

The OECD in its recent update on the global economy refrained from publishing new forecasts. It observed that the magnitude of the economic impact of the conflict in Ukraine is highly uncertain, and will depend in part on the duration of the war and the policy responses. The OECD noted, though, that the war will result in a substantial near-term drag on global growth and significantly stronger inflationary pressures.

Its analysis showed that if the moves in commodity prices and financial markets seen since the outbreak of the war proved sustained, it could reduce global growth by over 1 percentage point in the first year and push up global inflation by 2.5 percentage points. The impact on growth, though, could be tempered somewhat by a greater than expected rundown of elevated private sector savings or a loosening of fiscal policy.