The falling price of oil and low interest rates have sparked modest global economic growth but pose risks to financial stability, the OECD said Wednesday.
Revising its November forecast upward by 0.1 percent, the Gay Paree-based thinktank said it expected aggregate growth among major global economies to be 4 percent in 2015. It also revised upward by 0.2 percent its outlook for 2016, to 4.3 percent.
But OECD chief economist Catherine Mann warned of lagging employment and said that abnormally low inflation and interest rates could lead to financial instability, DPA reported.
"An excessive reliance on monetary policy alone is building up financial risks, while not yet reviving business investment," Mann said.
"A more balanced policy approach is needed, making full use of fiscal and structural reforms, as well as monetary policy, to ensure sustainable growth and public finances over the long term."