The Organization for Economic Co-operation and Development addressed The Bank of England to raise interest rates in order to control inflation.

The Economic body said normalization will start this year in order to prevent inflation expectations from soaring. Currently inflation runs at 4% – double its 2% target.

OECD showed its support for the deficit reduction plans by the Chancellor, and believes the inflation will plummet after next year, 2012. The organization mirrored Andrew Sentance’s call to immediately start tightening policies.

The Monetary Policy Committee member is retiring in June and will be replaced by Ben Broadbent, the former Goldman Sachs economist.

On his final speech Sentance spoke of the need for a sharp change in policies, especially with the ongoing inflation that makes its impact on wage and price-setting that continues to be a threat to the economy’s recovery.

He claimed a possibility of a future “structural scarcity” on energy and commodity prices to occur, leading to further significant price hikes. He predicted prices in fuel could go up to $300 in a span of 20 years, and insisted the Monetary Policy Committee to ““stop considering commodity price moves “one-offs”.

Broadbent shares the same perspective. The former Goldman Sachs economist supports BOE in keeping rates low.

Regardless of decreasing UK growth in 2011 from 1.5% to 1.4% and from 2% to 1.7% for the next year, the international organization kept its global predictions at 4.2% and claimed recovery improving.

Secretary General Angel Gurria, only however, said “The crisis is not over yet, it has just changed its skin.”