Central banks face tough fight for ‘last mile’ of disinflation – BIS
Credit losses could rival global financial crisis in higher-for-longer scenario, institution warns
Central banks have acted decisively to “conquer” inflation, but face tougher battles ahead to bring inflation down fully without serious financial stress, the Bank for International Settlements said today (June 25).
In its 2023 annual economic report, the BIS explores “stylised simulations” of the economic impact of the market-implied path of interest rates, as well as a more severe, “higher-for-longer” scenario.
“The impact could be substantial,” the BIS warns. Credit losses would likely be
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