Don’t Give Up Inflation Fight, BIS’s Carsten Tells Central Banks

Global central banks can’t afford to flinch in what may be a prolonged struggle to fully tame consumer prices, according to the head of the Bank for International Settlements.

“Over the coming years, monetary policy should focus squarely on bringing inflation back to levels consistent with central-bank objectives,” Agustin Carstens, general manager of the Basel-based institution, said in Sao Paulo on Friday. “This process may run into obstacles, particularly in the final stretch toward eventual convergence with inflation targets. But it is essential to achieve this objective.”