Free Trial
US STOCKS

Late Equity Roundup: Midday Support Evaporating

COMMODITIES

Crude Oil Slides On Iran Deal Prospects (Again)

USDJPY TECHS

Bear Trigger Remains Exposed

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI: Narrow Soft Landing Path Amid Need For Fast Hikes - BIS

(MNI) Ottawa
(MNI)

Central banks globally must act to break the higher inflation cycle, BIS sys, with just a small window of opportunity

Global central banks that missed the inflation surge must err on the side of breaking that cycle and only a "narrow path" remains to a soft landing as opposed to a worst-case scenario of global recession and stubborn high prices, the Bank for International Settlements said Sunday.

"The most pressing challenge for central banks is to restore low and stable inflation without, if possible, inflicting serious damage to the economy," according to the BIS annual report. "Real policy rates will need to increase significantly in order to moderate demand. Delaying the necessary adjustment heightens the likelihood that even larger and more costly future policy rate increases will be required."

Keep reading...Show less
325 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Global central banks that missed the inflation surge must err on the side of breaking that cycle and only a "narrow path" remains to a soft landing as opposed to a worst-case scenario of global recession and stubborn high prices, the Bank for International Settlements said Sunday.

"The most pressing challenge for central banks is to restore low and stable inflation without, if possible, inflicting serious damage to the economy," according to the BIS annual report. "Real policy rates will need to increase significantly in order to moderate demand. Delaying the necessary adjustment heightens the likelihood that even larger and more costly future policy rate increases will be required."

Keep reading...Show less