The central bankers' bank does not talk lightly about inflationary pressures. So when the Bank for International Settlements publicly cautions that central banks may need to raise interest rates more quickly, to head off inflation, it must be taken seriously.

The BIS has been brave in opening up this subject in its annual report, and should be applauded for doing so. It has made a timely call for banks to continue tightening monetary policy - as the US Federal Reserve is expected to do tomorrow with a further 0.25 percentage point rise.