The Bank for International Settlements (BIS), the world’s central bank umbrella body, called for more interest rate hikes Monday, warning the world economy is at a crucial point as countries struggle to rein in inflation.
Despite a relentless rise in rates over the last 18 months, inflation remains stubbornly high worldwide, the BIS pointed out.
Meanwhile, a jump in borrowing costs has triggered the most serious banking collapses since the financial crisis 15 years ago.
“The global economy is at a critical juncture. Stern challenges must be addressed,” Agustin Carstens, BIS general manager, said. “The time to obsessively pursue short-term growth is past. Monetary policy must now restore price stability.”
