BIS advises central banks to look through energy price spike
The BIS says central banks should treat recent oil and gas price surges as temporary supply shocks. This advice comes as major global banks meet this week.
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The Bank for International Settlements (BIS) has urged global central banks to avoid overreacting to the recent energy price spike, characterizing the situation as a textbook case for maintaining steady policy during temporary supply shocks. The warning follows a 40% rise in Brent Crude Oil and a nearly 60% jump in wholesale gas prices this month, triggered by the crisis in Iran. These movements have drawn comparisons to the 2022 economic environment when the invasion of Russia into Ukraine sent global inflation soaring.
