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BIS urges targeted fiscal policy to curb inflation risks

Published Monday, May 11, 2026 · Updated May 11

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The Bank for International Settlements (BIS) has urged for targeted fiscal policy to mitigate inflation risks. Its general manager, Pablo Hernandez de Cos, warned that broad-based stimulus could exacerbate inflation and force central banks to increase interest rates, also noting risks from Middle East disruptions.

What We Know — Key Points

  • Pablo Hernandez de Cos, general manager of the BIS, stated that broad-based, persistent stimulus could increase inflationary risks and compel central banks to raise interest rates.
  • The BIS's recommendations also highlighted potential risks from prolonged Middle East disruptions and market sentiment.

What Is Claimed — Perspectives

  • Channel News AsiaCenter

    The article reports on the BIS's recommendations for global fiscal policy to maintain financial stability and curb inflation, highlighting potential risks from prolonged Middle East disruptions and market sentiment.

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