The OECD has urged the US, Japanese and European central banks to avoid raising interest rates further, saying current inflation conditions do not justify monetary tightening.
In separate comments directed at each of them, OECD chief economist Jean-Philippe Cotis acknowledged that inflation was 'still a bit too high for comfort' for the Federal Reserve in the US, but said there was no compelling case for more rates rises.
Cotis also suggested the European Central Bank had no basis for further rate increases. 'With inflation having recently surprised on the downside, the outlook for price stability looks fairly benign,' he said.
In Japan, he said, there was still deflation and rates should not be raised until inflation has become 'firmly positive'.
The Federal Reserve finished its long cycle of tightening interest rates in August last year, leaving its key rate at 5.25%. The ECB completed its seventh quarter-point rise in euro zone interest rates in 15 months last week, taking its key rate to 3.75%.
In Japan, the Bank of Japan raised interest rates last month for only the second time in six years to 0.5%. The OECD, or the Organisation for Economic Co-operation and Development, is an international economics institution that counts 30 of the most industrialised countries in the world as members.
