ZURICH, Switzerland — The
Russia-Ukraine conflict has exacerbated the problems central banks
face as soaring energy costs fuel high inflation, a top official of the Bank of
International Settlements said on Monday.
اضافة اعلان
The war “has
greatly heightened economic uncertainty” and its evolution “will be by far the
dominant factor influencing markets”, said Claudio Borio, head of the monetary
and economic department at the BIS, dubbed the central bank for central banks.
“Against this
backdrop central banks’ challenges have become more complex as inflationary
pressures have risen even as the outlook for growth has softened,” he added.
Energy prices have
rocketed over the geopolitical tensions in eastern
Europe as fears grow of
supplies from Russia dwindling or being cut off altogether.
Brent crude oil
topped $100 per barrel — levels not seen since 2014 — and Europe’s reference
Dutch TTF natural gas price surged more than a third in Monday trading.
Soaring inflation
had already posed problems for central banks over whether to hike interest
rates and how far to go as economies reopened following
pandemic restrictions.
The BIS did not
comment on international sanctions imposed against Russia over Moscow’s
invasion of Ukraine.
The
Switzerland-based institution acts as a neutral space where central bankers can
meet and discuss monetary policy issues.
But spokeswoman
Jill Forden said the BIS would follow sanctions and not be an avenue for
sanctions “to be circumvented”.
Earlier, a senior
policymaker at the
European Central Bank said the guardian of the euro should
take a cautious response to the economic uncertainty caused by the Russian
invasion of Ukraine, as the conflict threatens to increase inflation and choke
growth in the eurozone.
“This terrible event has made the
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