BIS urges central banks to act quicklyHIGH COSTS: Central banks should act before inflation becomes entrenched, the BIS head said, adding that it would be better if a soft landing could be achievedAFP, ZURICH, SwitzerlandCentral banks must not let inflation become entrenched, with the threat of stagflation looming over the global economy, the Bank for International Settlements (BIS) said on Sunday in its annual economic report. The BIS, considered the central bank of central banks, said institutions would have to move swiftly to ensure a return to low and stable inflation, while limiting the impact on growth. “The key for central banks is to act quickly and decisively before inflation becomes entrenched,” BIS general manager Agustin Carstens said. BIS’s flagship report said that in restoring low, stable inflation, central banks should seek to minimize the hit to economic activity, in turn safeguarding financial stability. The most pressing challenge for central banks is to bring inflation down to low levels, the BIS said.
