The OECD reaffirmed a GDP growth forecast of 2.25 pct for 2001 and 2.5 pct for 2002. "Risks appear balanced so long as the global slowdown is not greater than projected: continuing declines in unemployment may fuel increased wage pressures, which could in turn dampen investment," it said. "On the other hand, tax reductions might induce a higher consumption of private households than assumed in the projections," it said. The OECD again stated that a cut in short-term interest rates underpinned its projections. "Monetary conditions should therefore not act as a brake for GDP growth," it said.