Central Banks
Central Banks Must Stay the Course on Rate Hikes, OECD Says
- OECD revises up core inflation outlook for G-20 economies
- Organization says growth outlook improved, but still fragile
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The Federal Reserve and the European Central Bank must press ahead with interest-rate increases and not be blown off course by the fragility of the global economic recovery and vulnerabilities in the financial system, the OECD said.
In its latest assessment of the world economy, the Paris-based organization in some ways painted a rosier picture of the challenges policymakers need to navigate. It raised its global growth forecast for this year to 2.6% from 2.2% in November and predicted weaker headline inflation in many countries.