Central Banks Intensify Efforts to Curb Global Inflation – BIS
Central banks are on the brink of victory in the fight to bring the global surge in inflation back under control, the Bank for International Settlements said on Monday.
There was cause for “cautious optimism”, according to the latest quarterly report from the BIS, which is often dubbed the central bankers’ central bank due to its regular behind-closed-doors meetings of the world’s top monetary policymakers.
“Central banks have taken decisive action and thus prevented inflation from becoming entrenched,” the BIS’s Monetary and Economic Department head Claudio Borio told reporters. “At the same time, economic activity has been remarkably resilient and the financial system has held up well.”
The BIS has been gradually becoming more hopeful about the outlook. At the end of last year it said progress in beating back inflation had been encouraging, but stressed at that point that central banks were not out of the woods.
While there was the usual caution that risks remain, Borio noted this time how the “daylight” had narrowed significantly between when markets expect interest rates to start falling again and what the big central banks have been signalling.
Reuters /Hauwa Abu
Comments are closed.