IMF's Rajan sees a very promising 2006
"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 the bag before starting to move rates permanently higher."
"We see a shifting of global growth away from the United States to other countries. Whether it's enough is still for the jury to decide," he said.
"The jury is still out." Overall, he predicted a good year ahead.
"2006 looks very promising. It looks like a strong year for the world economy. Growth this year looks even better than last year."
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