The OECD defended this Friday, in the update of the economic forecasts, more interest rate hikes in many economies, including the euro zone and the United States, and that the support measures focus on the more vulnerable.

In today’s updated interim economic forecast, the report of which is entitled “Fragile recovery”, the Organization for Economic Co-operation and Development (OECD) considers that “monetary policy should remain restrictive until ‘there are clear signs that the pressures on underlying inflation will be reduced in a sustainable way’.

“Further increases in interest rates are still needed in many economies, including the United States and the eurozone. With ‘core’ inflation slowly receding, interest rates are likely to remain high until mid-2024,” he notes.

Thus, it forecasts that interest rates will peak between 5.25% and 5.5% in the United States, 4.75% in Canada and 4.25% in the euro zone (key refinancing rate) and in the Kingdom. -United.

“The projected decline in inflation over the next two years could allow for a modest easing of monetary policy in some economies in 2024, particularly in those where the tightening cycle is already close to ending,” he said. -he.

The OECD has also said that budget support aimed at mitigating the impact of high food and energy prices should focus more on the most vulnerable, arguing that better targeting and a “timely” reduction in general assistance would “help ensure sustainability”. incentives to reduce energy consumption and limit demand.

It also advocates reform efforts and strengthened international cooperation to help overcome food and energy insecurity.