OECD bit more rosy on world economy

A key international economic watchdog has nudged up its forecast for global economic growth this year in response to low prices and expectations that interest rates will remain low in many leading economies.

The Organization of Economic Cooperation and Development, a grouping of the world's richest countries that acts like a think tank, said on Wednesday that easy and cheap monetary policy in many parts of the world, including Europe, has helped underpin growth. However, it warned that a total reliance on that tool could strain the international financial system.

The Paris-based organization now expects 4 percent growth this year, up 0.1 percentage points from its last such forecast in November. And the prediction for 2016 was raised 0.2 percentage points, to 4.3 percent.