Skip to content
Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    U.S. Navy SEAL Jocko Willink in 2024 on the “Jocko Podcast” that his unit took part in the operation that captured Yaqoubi.
    Videos

    Iraq: Mustafa Yaqoubi Arrest Preceded 2004 Sadr Uprising

    September 17, 2026 2 Min Read
    Fox NFL Reporter Erin Andrews 2009 hotel video
    SportsVideos

    Fox NFL Reporter Erin Andrews Recalls Career Fears After 2009 Hotel Video

    September 12, 2026 1 Min Read
    Sharon Stone ‘Orbs’ During Stroke Recovery
    Videos

    Sharon Stone Recalls ‘Orbs’ During Stroke Recovery

    September 12, 2026 1 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: OECD Forecasts Central Bank Interest Rate Hikes
PhotoNews PakistanPhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
The OECD logo is shown with different national flags filling the large letters on a white background.
PhotoNews Pakistan > Business > OECD Forecasts Central Bank Interest Rate Hikes
Business

OECD Forecasts Central Bank Interest Rate Hikes

Web Desk
By Web Desk Published June 3, 2026 2 Min Read
Share
The OECD logo appears with national flags displayed inside the letters.
SHARE

The OECD inflation warning said governments may bear the brunt of the response to an energy-driven price shock, although high public debt leaves them with limited room to act.

The Organisation for Economic Co-operation and Development said broad fiscal support could also worsen the supply crunch. It warned that such measures may encourage energy use when supplies remain tight.

Meanwhile, central banks face a harder policy trade-off. The OECD said it must curb inflation without causing unnecessary damage to economic growth.

In a milder scenario, the OECD expects some initial interest-rate increases. However, it said central banks may cut rates in 2027 as price pressures ease.

🔴 EN DIRECT: Perspectives économiques de l’#OCDE

Regardez le SG de l’OCDE @MathiasCormann & le Chef économiste @stescarpetta présenter les projections éco. les plus récentes de l’OCDE en amont de la RCM.#OECDministerial https://t.co/RHtPKe2gub

— OCDE (@OCDE_fr) June 3, 2026

If the disruption persists, the OECD expects a stronger policy response. It said rates would likely rise by 50 to 75 basis points in most countries before cuts return in 2027.

The OECD also said that severe market tightening could force central banks to rethink their bond runoff plans. In that case, they may slow reductions in sovereign bond holdings bought during earlier crises.

For the European Central Bank, the OECD said policymakers could also revive long-term refinancing operations. Other central banks may even restart quantitative easing if market stress deepens.

Read: Oil Prices Rise Over 2% After Israel Expands Lebanon Push

Scarpetta said central banks can look through supply-driven price increases as long as inflation expectations remain anchored.

However, he said policymakers may need to respond if price pressures spread or growth weakens sharply.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Bank Alfalah Pehchan account

Recent Posts

Tyson Fury and Anthony Joshua pictured together ahead of their boxing fight.

Fury vs Joshua: Cardiff Hosts December 11 Netflix Fight

Larry Ellison Backs Paramount Bid with $40.4 Billion Personal Guarantee

Paramount-Warner Merger Opponents Challenge US Settlement

Pakistan and China players competing in Asian Games hockey in Nagoya

Pakistan Beat China 3-0 in Asian Games Hockey in Nagoya

Post Archives

More Popular from Photonews

China Iran US talks continue in Switzerland as Beijing backs Pakistan and Qatar mediation efforts
World

China-Iran Diplomacy Grows as Beijing Urges US Talks

2 Min Read
Jorge Martín rides for Aprilia Racing during a MotoGP session
Sports

Austria MotoGP Pole: Martin Edges Marquez by 0.015s

2 Min Read
Warner Bros Paramount merger talks
Entertainment

Paramount Warner Merger Clears Hurdle in $110B Deal

2 Min Read
Top NewsWorld

Pennsylvania House Race Pits Fitzpatrick Against Harvie

WASHINGTON: The Pennsylvania House race in the 1st Congressional District pits Republican Rep. Brian Fitzpatrick against…

September 20, 2026
Top NewsWorld

Ireland Urges EU Israel Sanctions at UN Assembly

NEW YORK: Irish Foreign Minister Helen McEntee called for EU sanctions on Israel ahead of the…

September 22, 2026
Pakistan

Imran Khan Medical Checkup Conducted at Adiala Jail

RAWALPINDI, Punjab: A specialist team from the Pakistan Institute of Medical Sciences (PIMS) and Shifa Eye…

September 20, 2026
Tech

OpenAI Claude Breach Reached Employee Account, Internal GitHub

Security researchers used Anthropic’s Claude Opus 5 to carry out an OpenAI Claude breach that compromised…

September 18, 2026
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

    Categories

    • World
    • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir

     

    • Top News
    • Business
    • Entertainment
    • Sports
    • Videos
    • Tech
    • Offbeat
    • Blog
    • About Us
    • Privacy Policy
    • Code of Ethics & Editorial Standards

    © 2026 Phototnews
    All Rights Reserved.

    Welcome Back!

    Sign in to your account

    Lost your password?