BIS urges decisive wave of global rate hikes to stem inflation
|reuters has reported on the Bank for International Settlements (BIS), calling for interest rates to be raised "quickly and decisively" to prevent the surge in inflation from turning into something even more problematic.
"The key for central banks is to act quickly and decisively before inflation becomes entrenched," Agustín Carstens, BIS general manager, said as part of the body's post-meeting annual report published on Sunday. Carstens, former head of Mexico's central bank, said the emphasis was to act in "quarters to come".
"A lot of it will depend on precisely on how permanent these (inflationary) shocks are," Carstens said, adding that the response of financial markets would also be crucial.
"If this tightening generates massive losses, generates massive asset corrections, and that contaminates consumption, investment and employment - of course, that is a more difficult scenario."
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