Central banks must keep interest rates high to combat inflation, says OECD

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Central banks must keep interest rates high to combat inflation, says OECD
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Organisation also says UK will be only G20 economy apart from Russia to shrink this year

Unlike the economic forecasts for the UK by the Office for Budget Responsibility, the OECD expects growth in the UK to remain weak next year, rising to only 0.9%. The OBR, which provides independent forecasts for the Treasury, said earlier this week it estimates the UK economy will grow by 1.9%.

Inflation in the UK is expected to fall from above 10% this year, higher than France, Spain, the US and Japan, to be among the lowest in the G20 by the end of the year at below 3%.

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