Bank for International Settlements General Manager Reflects on Impact of Israel Conflict on Global Economy
Too Early to Gauge the Influence of the Israel Conflict on Global Economy, Says BIS General Manager
Bank for International Settlements General Manager Agustin Carstens expressed uncertainty regarding the impact of the newly erupted conflict in Israel on the global economy. With the world still grappling with post-pandemic high inflation, Carstens believes it is premature to determine the precise consequences of the conflict. While acknowledging the potential effects on oil prices and stock markets, the General Manager emphasized the need for caution in drawing conclusions. Carstens made these comments during a discussion at the National Association for Business Economics, where he also stressed the importance of central banks maintaining relatively high interest rates to combat inflation. “We need to continue being very firm,” Carstens asserted.
Unpredictable Implications on Oil Prices and Stock Markets
The conflict in Israel has historically had a considerable impact on the price of oil and can disrupt the stock market. However, it remains too early to ascertain the precise consequences of the recent outbreak. Bank for International Settlements General Manager, Agustin Carstens, refrained from making definitive statements regarding the potential effects on these crucial economic indicators. While the conflict may have ripple effects, Carstens urged caution and emphasized the need for further analysis before reaching any conclusions. Speaking at the National Association for Business Economics, Carstens reiterated the importance of central banks maintaining higher interest rates to combat inflation, emphasizing the need for a steadfast approach.
Global Economy Faces Uncertainty Amidst New Israel Conflict
Against the backdrop of a global economy still grappling with post-pandemic high inflation, Bank for International Settlements General Manager Agustin Carstens expressed reservations about the implications of the newly erupted conflict in Israel. Carstens stated it is too early to gauge the full impact of the conflict on the global economy. While traditionally the conflict has influenced oil prices and stock markets, Carstens cautioned against making premature assessments. Speaking at the National Association for Business Economics, Carstens emphasized the necessity for central banks to maintain relatively high interest rates for a while longer to combat inflation. He stressed the importance of remaining resolute in the face of ongoing uncertainty.
