Banking body urges decisive wave of global rate hikes

LONDON: The world's central bank umbrella body, the Bank for International Settlements, has called for interest rates to be raised "quickly and decisively" to prevent the surge in inflation turning into something even more problematic. The Swiss-based BIS held its annual meeting recently.

Surging energy and food prices mean inflation in many places is now its hottest in decades. But usual remedy of ramping up rates is raising the spectre of recession, and even of the dreaded 1970s-style "stagflation", where rising prices are coupled with low or negative economic growth.

"The key is to act quickly and decisively," Agustin Carstens, BIS general manager, said. Carstens, former head of Mexico's central bank, said the emphasis was to act in "quarters to come". reuters


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