PARIS, Oct 12: The OECD slashed on Wednesday its forecast for British economic growth this year to 1.7 per cent from 2.4 per cent signalled earlier but said there was no particular case for a cut in interest rates.

The Organisation for Economic Cooperation and Development said that a slowdown was “perhaps not unwelcome” with the economy operating at or slightly above capacity.

And there was “not a compelling case” for further cuts in British interest rates, the OECD said in a report on Britain.

The OECD also noted that Britain’s budget deficit stood at around 3.0 per cent of gross domestic product (GDP), the ceiling laid down in the European Union’s Stability and Growth Pact.—AFP