OECD Suggests Bank of England to Raise Interest Rates

OECD Suggests Bank of England to Raise Interest RatesOrganization for Economic Cooperation and Development has indicated in a new report that the bank has been suffering an inability of preserving the credibility due to the ever rising prices.

As the inflation has crossed the official target of 2%, the bank needs to elevate its rates by the end of this year and to at least 3.5% by the end of next year, added OCED.

The warning has appeared in the wake of the Bank managing a stagnant inflation this year.

Bank of England Governor Mervyn King opined that there are fears looming large of sloth in the nation's recovery due to the rising rates of inflation.

Already when the bank has proved that the inflation is going tough this month, it is trying to keep the interest rates low at 0.5%.

The minutes from the Bank's latest meeting have depicted that fear of economic meltdown in Europe is the greatest concern in front of the MPC members, for now.

The estimated growth for the first three months of the year have been jolted at 0.3%, which is slower in comparison with that in final quarter of 2009.

"A weak fiscal position and the risk of significant increas