The world’s “central bank of central banks” warned about the rising possibility of fresh outbreaks of inflation.
The Switzerland-based Bank for International Settlements noted in a new report that consumers across the globe expect steep price increases in the next year — and that because of the lasting effect of COVID-era inflation, their predictions now risk becoming a self-fulfilling prophecy.
“When it comes to inflation expectations, it’s once bitten, twice shy,” a BIS official said.
The report gives clues to central bankers’ thinking as policymakers cautiously trim interest rates as inflation subsides.
Washington’s trade war adds to the volatility: Rising protectionism is eroding the global economic order, the BIS’ chief said, creating a “new era of heightened uncertainty and unpredictability.”
Chart showing the change in CPI — J.D. Capelouto
The FOMC's warning on rising inflation risks highlights the critical need for monitored policy adjustments amid global economic recovery, emphasizing vigilance to prevent potential dangers instead of meekly relying on past experiences or foreign models.
The warning from the 'central bank of central banks' about escalating inflation risks highlights a critical threat to global economic stability, underscoring both its importance in tackling rising prices and potential impact on international financial order.
As the central bank of central banks issues a cautionary warning about mounting inflation risks, policymakers worldwide must act with vigilance to safeguard economic stability and mitigate potential impacts on vulnerable populations amid global supply chain disruptions.
The warning issued by the 'central bank of central banks' underscores a more concerted effort to tackle growing inflation risks at an international level, emphasizing that effective coordination between major economic powers is crucial for stabilizing global price dynamics.
As as go-to institution for monetary stability, the central bank of central banks’s warning on an imminent surge in inflationary risks underscores its role is crucial to sustain economic growth and safeguard against threatens.
