Central Bank lowers growth forecast amid oil fears and high US debt

GROWTH this year will be slower than previously anticipated and the Central Bank has cut its forecast for 2005 by 0.75% to 4.25%.

Fears oil prices could destabilise the world economy are a real danger and the bank is also worried that high debt levels in the US will hit the dollar.

That would change the economic landscape because a weaker dollar would undermine European growth as the eurozone would become less competitive, the bank warns.