OECD warns UK to raise interest rates or face runaway inflation

25th May 2011

On The Guardian website the OECD is reported as warning the Bank of England to start raising interest rates to prevent inflation "taking hold in the UK".

Borrowing costs would also have to rise, it added.

The OECD said it supported the UK Government's attempt to reduce the nation's budget deficit via spending cuts but predicted that the UK would "continue to lag behind most other leading industrial nations as it recovered from the downturn".

It predicted growth of1.4% in 2011, rising to 1.8% in 2012. This will also result in higher unemployment, with 8% of the workforce without a job by 2012.

To receive our free weekly email sign up here.

Leave a Reply

Your email address will not be published.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