Monetary policy stance should remain “restrictive” in most major economies for “some time to come”, the OECD has said, as it projects the UK to have the highest inflation rate among G7 economies in 2024 and 2025.
In its interim outlook published today (5 February), the organisation said monetary policy needs to remain "prudent" to ensure underlying inflationary pressures are "durably contained". "Scope exists to lower policy interest rates as inflation declines, but the policy stance should remain restrictive in most major economies for some time to come," it added. Bank of England holds at 5.25% and predicts higher rates into 2027 The Paris-based organisation said that lower inflation in the US will allow interest rates to be eased, but warned the UK would suffer the G7's highest inflati...
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