Bank for International Settlements (BIS) General Manager Agustin Carstens spoke Monday at Colombia University in New York.
- said that to avoid a long-term "high-inflation regime" rates may need to stay higher and for longer than previously thought, even at the expense of slowing down economies
- the increase in debt levels since the GFC and pandemic are making central banks' task more complex
- central banks are looking at large losses - on paper at least - on bonds they bought to try to boost their economies during crises
- which also means that governments are no longer getting a share of the profits those purchases once generated
- financial instability is also a major challenge
