The credibility and independence of central banks around the world is at risk if stubbornly-high global inflation rates are not bought under control, the head of the Bank for International Settlements has warned.
The BIS, often referred to as the central bankers’ bank, has been calling for a robust attack on inflation over the last year having, like most major institutions, initially underestimated the impact COVID-era stimulus would have.
Speaking in Brazil, Agustín Carstens, the bank’s general manager, said a tough response to inflation was fundamental for maintaining trust in central banks’ ability to keep economies on an even keel.
Read More : Inflation Fight Poses Risks to Central Banks’ Independence, Caution BIS