Thursday, December 18, 2008

IMF: Recovery by 2010

LONDON: The International Monetary Fund (IMF) cautiously forecast a US recovery by early 2010 and a British central banker said yesterday interest rates could hit zero, a level Japan’s are forecast to drop closer to this week.

The US is mired in recession and has dragged much of the world with it, following the meltdown of its housing market in 2007 and the crippling bank losses that resulted.

The Federal Reserve cut its key rate to near zero on Tuesday but the failure of Opec’s biggest ever supply cut to lift oil prices underscored just how gloomy markets are about the world economy.

”There is a reasonable probability ... of the US economy starting to recover at the end of 2009 or the start of 2010,” IMF managing director Dominique StraussKahn told Spanish newspaper Expansion. – Reuters

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