BIS warns of material risk of further financial stress

Agustin Carstens, Bank for International Settlements (BIS) general manager, warned in the organization's annual report published on Sunday, the world economy was now at a crucial point as countries struggle to rein in inflation.

Key quotes

Moving forward, monetary and fiscal policies need to be more realistic in their ambitions.

Unrealistic expectations about degree and persistence of monetary and fiscal support need to be corrected.

There is a material risk that an inflation psychology will take hold.

There is material risk of further financial stress.

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