OECD raises 2026 global growth forecast to 2.9%, predicts further rate hikes; markets slide
On September 23, global financial markets fell as the OECD raised its 2026 global growth forecast to 2.9% from 2.8% and predicted the Federal Reserve will raise rates once more this year, with the eurozone, Australia, and South Korea also expected to implement moderate rate hikes. The OECD cited rising commodity prices as a source of short-term inflationary pressure. European stocks, US futures, gold, and silver all declined. Eurozone composite PMI rose to 53.1 in September, its highest since April 2023, adding to expectations of another ECB rate hike as early as October.
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US stocks and bonds fall as Treasury yields surge; OECD predicts one more Fed rate hike
On September 23, US stock indices fell, with the Dow down 0.3%, S&P 500 down 0.038%, and Nasdaq down 0.63%, while bond yields surged, pushing the 10-year Treasury yield to 5.04%, the highest since 2007. Large tech stocks were mixed, with Meta rising 3.3% to a new high ahead of its Connect conference, while chip stocks mostly declined. The OECD raised its 2026 global growth forecast to 2.9% from 2.8% and predicted the Federal Reserve will raise interest rates once more this year, with the eurozone, Australia, and South Korea also expected to implement "moderate rate hikes." The OECD cited rising commodity prices as a source of short-term inflationary pressure. Eurozone September composite PMI rose to 53.1, the highest since April 2023, indicating faster private-sector activity and raising expectations for another European Central Bank rate hike as early as October. Gold fell 1.64% to $4,286.61/oz, while oil prices rose, with Brent crude up nearly 2% to $97.27/barrel.
Read sourceGlobal Markets Slide as OECD Raises Growth Forecast and Predicts Further Rate Hikes
Global financial markets experienced a broad sell-off on September 23, with European stocks, US futures, gold, and silver all declining amid rising expectations of further interest rate hikes. The sell-off followed the release of the OECD's latest economic outlook, which raised the 2026 global growth forecast to 2.9% from 2.8% and warned that short-term inflation pressures would increase due to rising commodity prices. The OECD predicted the Federal Reserve will raise rates once more this year, the Bank of Japan will hike further, and central banks in the eurozone, Australia, and South Korea will implement 'moderate rate hikes.' The report noted that while the global economy has shown resilience despite Middle East tensions, risks remain tied to the conflict, trade policies, and energy prices. Separately, eurozone PMI data for September showed the fastest expansion in nearly three and a half years, with both manufacturing and services growing, adding to expectations that the European Central Bank may raise rates again as early as October. The ECB had already raised its deposit rate to 2.50% effective September 16.
Read sourceGlobal Markets Slide as OECD Raises Growth Forecast and Predicts More Rate Hikes
Global financial markets experienced a broad decline on September 23, with European stocks, US futures, gold, and silver all falling amid rising expectations of further interest rate hikes. The sell-off followed the release of the OECD's latest economic outlook, which raised the 2026 global growth forecast to 2.9% from 2.8% and warned that short-term inflation pressures would increase due to rising commodity prices. The OECD predicted that the US Federal Reserve will raise interest rates once more this year, the Bank of Japan will also hike further, and the eurozone, Australia, and South Korea will implement 'moderate rate increases.' The report noted that while the global economy has shown resilience despite Middle East tensions, the outlook remains highly dependent on the conflict's evolution. Adding to the rate-hike narrative, data showed the eurozone's composite PMI surged to a near three-and-a-half-year high of 53.1 in September, signaling robust growth alongside rising price pressures, which has intensified market speculation about another European Central Bank rate increase as early as October.
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Global Markets Tumble as OECD Raises Growth Forecast and Predicts Further Rate Hikes
Global financial markets experienced a broad sell-off on September 23, with European stocks, US futures, gold, and silver all declining amid rising expectations of further interest rate hikes. The sell-off was triggered by the OECD's latest economic outlook, which raised the 2026 global growth forecast to 2.9% from 2.8% and warned that short-term inflation pressures would increase due to rising commodity prices. The OECD predicted that the US Federal Reserve will raise interest rates once more this year, the Bank of Japan will hike further, and central banks in the Eurozone, Australia, and South Korea will implement 'moderate hikes.' The report noted that while the global economy has shown resilience despite Middle East tensions, risks remain from energy prices, trade policies, and geopolitical uncertainty. Meanwhile, Eurozone September PMI data showed the composite index rising to 53.1, the highest since April 2023, indicating strengthening growth alongside persistent inflation pressures, which has increased market expectations for another rate hike by the European Central Bank as early as October.
Read sourceGlobal Markets Slide as OECD Raises Growth Forecast, Predicts Further Rate Hikes
Global financial markets experienced a broad sell-off on September 23, with European stocks, US futures, gold, and silver all declining amid rising expectations of further interest rate hikes. The sell-off followed the release of the OECD's latest economic outlook, which raised its 2026 global growth forecast to 2.9% from 2.8%. The OECD also predicted that the Federal Reserve will raise interest rates once more this year, and that the European Central Bank, the Reserve Bank of Australia, and the Bank of Korea will implement further 'moderate' rate increases. The Bank of Japan is also expected to raise rates. The OECD cited rising commodity prices as a source of short-term inflationary pressure. Adding to the rate hike narrative, data showed the Eurozone's composite PMI rose to 53.1 in September, its highest level in nearly three and a half years, indicating robust growth in both manufacturing and services. The European Central Bank recently raised its deposit rate to 2.50%, and markets are pricing in another potential hike as early as October.
Global Markets Slide as OECD Raises Growth Forecast and Predicts Further Rate Hikes
Global financial markets experienced a broad decline on September 23, with European stocks, US futures, gold, and silver all falling amid rising expectations of further interest rate hikes. The sell-off followed the release of the OECD's latest economic outlook, which raised its 2026 global growth forecast to 2.9% from a previous estimate of 2.8%. The OECD also predicted that the US Federal Reserve will raise interest rates once more this year, while the European Central Bank, the Bank of Japan, and central banks in Australia and South Korea are expected to implement further rate increases. The OECD cited rising commodity prices as a source of short-term inflationary pressure. The report noted that while the global economy has shown resilience despite geopolitical tensions, the outlook remains heavily dependent on developments in the Middle East. The OECD recommended that central banks keep inflation expectations anchored and adjust monetary policy based on price pressures and growth prospects. The article also noted that the eurozone's composite PMI rose to 53.1 in September, its highest since April 2023, indicating accelerating private sector activity.
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