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Bank for International Settlements pushes for more rate hikes

Key institution warns decisive action from central banks needed to stop leading economies from ‘tipping’ into more severe cost-of-living crisis

Decisive action from central banks is needed to stop leading economies from ‘tipping’ into a more severe cost-of-living crisis, a key institution has warned. 

The Bank for International Settlements (BIS), known as the ‘bank of central banks’, said the risk of stagflation ‘looms over the global economy’. 

Cost-of-living crisis: Institutions like the Bank of England need to take ‘timely and decisive action’

In order to combat sky-high inflation and flat-lining growth, it said, institutions like the Bank of England need to take ‘timely and decisive action’. 

Agustin Carstens, general manager of the Switzerland-based BIS, said: ‘The key for central banks is to act quickly and decisively before inflation becomes entrenched. 

‘If it does, the costs of bringing it back under control will be higher. The longer term benefits of preserving stability outweigh any short-term costs.’ 

It comes as the Bank of England has been criticised for acting too slowly to battle the crisis.