via telegraph.co.uk
Massive taxpayer handouts and a money-printing spree helped stoke inflation in Britain and around the world, with years of interest rate pain now needed to get the crisis under control according to a top central banker….
If central banks were serious about fighting inflation, they would stop buying their own debt with created-out-of-thin-air money to forestall an uncontrolled spike in borrowing costs. They would also raise capital requirements on banks, which would mean GAME OVER for these reckless lenders.
BIS warns world economy at critical juncture in inflation fight
LONDON (Reuters) – The world’s central bank umbrella body, the Bank for International Settlements (BIS), called on Sunday for more interest rate hikes, warning 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 collapses since the financial crisis 15 years ago.
“The global economy is at a critical juncture. Stern challenges must be addressed,” Agustin Carstens, BIS general manager, said in the organisation’s annual report published on Sunday.
“The time to obsessively pursue short term growth is past. Monetary policy must now restore price stability. Fiscal policy must consolidate.”