OECD Warns Global Inflation to Persist, Projects Further Fed Rate Hikes

The OECD said on September 23, 2026, that global inflation will exceed forecasts in 2027, necessitating further monetary tightening across most Group-of-20 economies. The Paris-based organization raised consumer-price growth projections for every G-20 nation except China and Saudi Arabia compared with its June outlook. "No central banks have to remain very vigilant," said OECD Chief Economist Stefano Scarpetta, adding that policymakers may need to intervene more than in 2022. The OECD forecasts one more Fed hike this year, modest increases in the euro area, Australia and South Korea, and additional moves in Japan. It expects the Bank of England and Bank of Canada to hold steady. The warning follows coordinated tightening this month by the Fed, ECB and BOJ. The OECD also flagged risks from AI investment returns, elevated bond yields and trade policy uncertainty, while downgrading growth outlooks for Canada and France.