Bank for International Settlements: Inflation progress is encouraging, but central banks are "not out of the woods yet"

The Bank for International Settlements (BIS) softened its hawkish stance on inflation, saying recent progress was encouraging, but stressed that central banks are not out of the woods. Claudio Borio, head of its monetary and economic division, said "credit risk is still possible" after a sharp rise in borrowing costs. Borio reiterated that the era of ultra-low interest rates has been "left behind", although markets and central bankers are clearly struggling over where interest rates will begin to level off.

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