The cut marks Citi's second in less than a month. It last downgraded the global economy on September 6.
The bank's Citi Investment Research & Analysis unit predicted on Thursday that growth will slow to 3 percent this year and 2.9 percent in 2012. Two percent global growth is seen by the International Monetary Fund 43048771) and World Bank as the classification for global recession.
as per article from Yahoo Finance: "Citi downgraded its outlook for the United States, Europe, Japan, Canada and the UK individually. It cut its view on China's 2012 growth rate, to 8.7 percent from 9 percent. The financial services firm expects interest rates to remain at their current, low levels as a result."
The bank's Citi Investment Research & Analysis unit predicted on Thursday that growth will slow to 3 percent this year and 2.9 percent in 2012. Two percent global growth is seen by the International Monetary Fund 43048771) and World Bank as the classification for global recession.
as per article from Yahoo Finance: "Citi downgraded its outlook for the United States, Europe, Japan, Canada and the UK individually. It cut its view on China's 2012 growth rate, to 8.7 percent from 9 percent. The financial services firm expects interest rates to remain at their current, low levels as a result."
Citi's Chief Economist Willem Buiter Said today : "Interest rates are likely to stay low and negative in real terms, for a long period in the main advanced economies," which in other words mean that the European Central Bank is likely to cut rates, while the US Federal Reserve will probably need to see significant downside risks before doing anything more than changing its language to guide interest rate expectations lower, based on that statement by Buiter.
Buiter said the Citi equity strategy team is cautious on risk assets and bullish on core fixed income, while the Citi foreign exchange team likes the dollar and yen.
Buiter also went on stating: "We expect more sovereign ratings downgrades among Euro Area countries in the next 3-6 months, including Italy, Spain, Greece, Portugal and Cyprus,"