Central Banks Warned to Stand Firm Against Inflation

The OECD has issued a stark warning to central banks globally, urging them not to lower their guard against inflation despite some easing trends. It highlighted that it’s premature to conclude whether the aggressive rate hikes have effectively curbed inflationary pressures, with core inflation remaining stubbornly high in many countries. The OECD’s cautious stance comes amidst a backdrop of the European Central Bank and the Federal Reserve signaling potential rate cuts, a move viewed skeptically by financial markets anticipating more easing​.