OECD: Fed and ECB to Keep Rates High Longer Than Markets Expect to Tame Inflation
• OECD sees Fed and ECB keeping rates high longer than markets expect • Needs to keep rates high to ensure inflation is weeded out • OECD outlook - Fed rate cuts only in 2H 2024; ECB not until Spring 2025 • Contrasts with market expectations of easing in 1H 2023 • Euro area inflation expected to come down slowly even with growth forecasts cut