OECD: UK Doesn't Need Higher Interest Rates Amid Global Slowdown

The Organisation for Economic Co-operation and Development (OECD) has stated that the UK does not need higher interest rates, contradicting market expectations. The OECD's interim economic outlook forecasts global growth to slow to 2.9% this year from 3.4% in 2025.

According to the OECD, some countries are proving more resilient than expected due to sizeable oil inventories and discretionary government support. However, guidance for G20 headline inflation was increased by 0.1 percentage point to 4.1%, up from last year's 3.4%.

The Bank of England has kept its key rate at 3.75%, but the OECD's chief economist Stefano Scarpetta said that the UK is 'starting from a different position' on monetary policy, with its interest rate already high enough to restrict inflation.