INSUBCONTINENT EXCLUSIVE:
the world economy was now at a crucial point as countries struggle to rein in inflation.Despite the relentless rise in rates over the last
18 months, inflation in many top economies remains stubbornly high, while the jump in borrowing costs triggered the most serious banking
Monetary policy must now restore price stability
It is the first time that, across much of the world, a surge in inflation has co-existed with widespread financial vulnerabilities.The
longer inflation remains elevated, the stronger and prolonged the required policy tightening, the BIS report said, warning that the
discussed the turbulent last few months.March and April saw a failure of a number of United States regional banks including Silicon Valley
stress in the banking system, the BIS report showed, although the frequency rises considerably if interest rates are going up, inflation is
surging or house prices have been rising sharply.It can even be as high as 40% if the private debt-to-GDP ratio is in the top quartile of
will grow by approximately 4% and 5% of GDP in advanced (AEs) and emerging market economies (EMEs) respectively over the next 20
years.Absent belt-tightening by governments, that would push debt above 200% and 150% of GDP by 2050 in AEs and EMEs and could be even
financial system where central bank digital currencies and tokenised banking assets speed up and smarten up transactions and global
without triggering recessions or major banking crashes - is still possible, but accepts it is a difficult situation.Analysts at Bank of
America have calculated there have been a whopping 470 interest rate rises globally over the past 2 years compared with 1,202 cuts since the
financial crash.The United States Federal Reserve has lifted its rates 500 basis points from near zero, the European Central Bank has hiked
with signs that companies are taking the opportunity to boost profits and workers are now demanding higher wages to prevent a further
referring to challenges central bankers now face reeling inflation back to safe levels
