Central banks must keep interest rates high to combat inflation, says OECD

The OECD says the UK economy will shrink by 0.2% this year. Photograph: Henry Nicholls/Reuters

Central banks should maintain the fight against inflation with high interest rates despite fears of a global banking crash, according to the OECD, which said the UK will be the only economy in the G20 apart from Russia to shrink this year.

The Organisation for Economic Cooperation and Development said it was concerned that inflation remained stubbornly high in many of its 39 members countries and urged central banks to persist with interest rate increases when necessary.