ECB urged to cut rates

THE European Central Bank should cut interest rates and step up its bond purchase programme to support confidence andeconomic activity in the eurozone, which has entered a mild recession and is the main risk to the world economy, the OECD said.

In its world economic outlook, the Organisation for Economic Cooperation and Development forecast economic growth in the 17 countries using the euro will slow to 0.2% in 2012 from an estimated 1.6% in 2011.

The bloc’s economy will then expand by 1.4% in 2013.