BIS to central banks - Push on with the great unwinding

The Bank for International Settlements (BIS) said on Sunday that the major central banks should press ahead with interest rate increases and added that some turbulence in financial markets will have to be negotiated along the way.

As per Reuters report, the BIS has asked policymakers to take advantage of the improving economic outlook and it’s surprisingly negligible effect on inflation to accelerate the "great unwinding" of quantitative easing programs and record low interest rates.

Key quotes

If we leave it too late, it is going to be much more difficult to accomplish that unwinding. Even if there are some short-term bumps in the road it would be much more advisable to stay the course and begin that process of normalization

Since we are now emerging from a very long period of very accommodative monetary policy, whatever we do, we will have to do it in a very careful way