Time to raise rates, says BIS

Central Banks Need to Raise Rates: BIS

By Christian Vits and Gabi Thesing

Central banks need to start raising interest rates to control inflation and may have to act faster than in the past, the Bank for International Settlements said.

“Tighter global monetary policy is needed in order to contain inflation pressures and ward off financial stability risks,” the BIS said in its annual report published yesterday in Basel, Switzerland. “Central banks may have to be prepared to raise policy rates at a faster pace than in previous tightening episodes.”

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Comment: The BIS has always been relatively sound in its advice - particularly in comparison with its peers such as the IMF whose "recommendations" have been mostly outright silly.