PARIS (AFX) - The Organisation for Economic Cooperation and Development's chief economist Ignazio Visco said that a moderate slowdown of economic activity in the euro-zone this year is "the most probable scenario."
In an interview appearing in Agefi, he said: "The recent stock market correction should have a (negative) impact on household consumption but the downside will be limited by the relatively low level of European savings held in equities."
Reiterating comments he made in Munich at the beginning of this month, Visco said: "Given the low level of underlying inflation there is undoubtedly little risk of an interest rate adjustment in the near term."
"In the event of a a greater exterior shock than expected, or if European competition were to deteriorate, having the means to counter such weakness by easing monetary policy will be important," Visco said.