General
Bank for International Settlements President Augustin Carstens believes that the world’s central banks have little chance of stopping rising inflation without pushing their economies into recession.
The head of the Bank for International Settlements said in an interview with Bloomberg TV today, Monday, that there is a possibility that central banks will be able to weather the crisis with minimal losses, represented in reducing GDP but not reaching a recession, while not ruling out the possibility of major problems.
The Bank for International Settlements warned this week in its annual report that the world risks entering a new era of persistently high inflation that central banks must monitor.
The BIS report added that policy makers are likely to be able to tame prices without causing economic contraction if they tighten monetary policy “in a timely and decisive manner.”
The BIS chief acknowledged that central banks are at the beginning of their efforts to reverse inflation, describing the efforts made so far as very good so far, but said there are still some ways to go.
Karstens stated that the positive side is that monetary policy is starting to act in a strong way, and looking to the future, the most important thing is for the central bank to continue this approach and act in a strong and flexible manner.
