OECD warning over risks of raising interest rates

Interest rate setters face a "difficult balancing act" amid the threat of a potential housing market correction and risks to the wider economy from raising borrowing costs, according to an influential think tank.

The Paris-based Organisation for Economic Co-operation and Development (OECD) warned that in a number of economies with sky-high house prices, rate hikes could have worrying side-effects after years of rock-bottom borrowing costs.