OECD warns sticky inflation means rates higher for longer

Interest rates may need to stay higher for longer to tame stubborn inflation, according to the OECD, as financial markets push out expectations for rate cuts to between May and June 2025, potentially after the next federal election.

The Paris-based organisation said the global economic outlook had “started to brighten” while chief executives said the Australian economy had proved far more resilient than expected just a few months ago.