Central banks are entering a new and tougher phase in their fight to tame inflation, according to a senior official at the Bank for International Settlements.
“It‘s likely that easier changes have already been banked,” said Claudio Borio, head of the monetary and economic department at the Basel-based institution. “From here on the task might be harder — what we call the ‘last mile.’”
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He spoke at a briefing to reporters on the BIS’s quarterly review, which observed that bond investors are pricing in a growing conviction that higher interest rates are here to stay, particularly in the US.
Given the cloudier outlook now faced by officials judging whether policy settings are right to curb consumer-price growth, financial markets will need to adjust to greater uncertainty, Borio said.
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“Central banks have clarified that their actions are data-dependent,” he said. “It’s less clear than before how high they will need to go and how long they will need to stay there.”
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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Updated: 19 Sep 2023, 11:31 AM IST
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