Fiscal policy response to Iran war risks worsening inflation: BIS chief

Central banks must be 'ready to act if needed,' Pablo Hernandez de Cos says

BIS General Manager Pablo Hernandez de Cos says the Middle East conflict is expected to "drive inflation upwards and growth downwards." (Photo by Akikazu Ishii)

TOKYO -- Central banks worldwide must be "ready to act" against inflationary effects of the Iran war, which risk being aggravated by an excessive fiscal policy response, said Pablo Hernandez de Cos, general manager of the Bank for International Settlements.