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The central bank cut its benchmark interest rate a quarter point, to 3.75percentt, saying that "over the next two years, the prospects for demand, both globally and domestically, are somewhat weaker than previously anticipated".
The IEA report published on Tuesday tallied with a gloomy forecast by the Opec oil cartel about the prospects for demand over the next year, sending oil prices down to $47£3535) a barrel.
Substantial variations in current levels and future prospects for demand satisfied among study countries raises questions for international and bilateral development organisations as well as countries.
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"Prospects for loan demand remain generally subdued," the bank said in a statement Thursday.
Gold touched yet another new peak, while copper rallied on the prospects for increased demand if the recovery does take hold.
NIESR said the domestically driven recovery would also be helped by business investment, which is expected to jump 9.6% this year as the rise in consumer spending makes companies more confident about the prospects for future demand.
Lee Hopley, the head of economic policy at the Engineering Employers Federationn, said: "The acceleration in the pace of job cuts across manufacturing comes on the back of a sharp downturn in production and growing uncertainty about the prospects for global demand".
Diamond miner De Beers saw its profits decline to $3 million in the first six months of the year from $323 million a year ago and remained downbeat about the prospects for U.S. demand.
The Internet, and the prospect of demand for interactive services, gives the cable companies an advantage over both satellite television and the telecoms companies.
Miners were among the main gainers, both on the prospect of demand for raw materials as Japan begins to rebuild and hopes that China would not hike interest rates following in line inflation figures.
But he acknowledged that officials had already fallen short on the first installment, and with the possibility of a recession looming, the prospect for reduced demand seems dim.
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