The Omicron coronavirus variant threatens to intensify imbalances that are slowing growth and boosting inflation, and to delay the world economy’s return to normality, the OECD said on Wednesday as it published its latest forecasts.
The Paris-based international organisation of largely rich country members warned that monetary policymakers should be “cautious” given the new strain of the virus and that the most urgent need is to accelerate deployment of Covid vaccines.
The recommendations came alongside its twice yearly economic outlook, which left global growth forecasts similar to those three months ago but significantly raised expected inflation.
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