IMF's Rajan sees a very promising 2006

The International Monetary Fund's Chief Economist on Friday 20 January predicted better global economic growth in 2006 but warned the European Central Bank against raising interest rates too quickly.

"The European recovery is still not in the bag," Raghuram Rajan told Reuters in an interview in Mumbai, saying it was an open question as to whether Germany's improving demand was driven by domestic or external factors.

"We would advise the ECB to go slow and to wait till the recovery is fully in

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