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BIS governors’ meeting: high interest rates not are going away ‘any time soon’ as global central bankers hunker down to tame inflation
- ‘We see an indefinite time of high interest rates and low economic growth,’ says the general manager of the Bank for International Settlements (BIS)
- Bank of England governor expects inflation won’t return to target level before 2025
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High interest rates are likely to be around for some time, hampering economic growth, as central banks around the world battle to bring down inflation, a financial conference heard.
“The central banks need to be really persistent in fighting inflation,” said Agustin Carstens, general manager of the Bank for International Settlements (BIS), during a conference organised by BIS and the Hong Kong Monetary Authority.
“We still see an indefinite time of high interest rates and low economic growth. There are many, many challenges. So far we are on a good trajectory, but the way forward is not necessarily so smooth.”
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He was speaking on Tuesday morning on a panel called “Inflation, Financial Stability and Employment” at the HKMA-BIS High-Level Conference 2023, which kicked off the previous evening with a gala dinner.
Global central banks have increased their interest rates substantially since last year amid a sharp rise in inflation.
07:32
BIS chief Carstens: High interest rates to stay even if a US recession might be 'avoided' in 2023
BIS chief Carstens: High interest rates to stay even if a US recession might be 'avoided' in 2023
“After some months of very intense monetary tightening, I have to say that we have seen [important] progress,” Carstens said.
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