The Organisation for Economic Cooperation and Development (OECD) says inflation in the eurozone, U.S. and Japan does not justify further rate rises.

The OECD's chief economist said that a rate rise might be needed at some stage in Europe, but that at the moment inflation was "well under control".

The European Central Bank (ECB) raised its key interest rate from 3.50% to 3.75% at its meeting in March.

While the OECD said no immediate increase was justified, it still predicted that the ECB's key rate would reach 4.0% by early 2008.

The OECD said that the Bank of Japan should wait until inflation is "firmly positive" before it raises rates again. (Source: BBC)