BIS Bulletin | No 28 |
23 July 2020
PDF full text
(918kb)
| 9 pagesKey takeaways
- The pandemic has increased downside tail risks in advanced economies (AEs), while it has increased both downside and upside tail risks in emerging market economies (EMEs).
- The collapse in output and oil prices, on balance, increases downside inflation risks.
- Recent exchange rate depreciations increase upside risks to inflation in EMEs.
- Tighter financial conditions raise both downside and upside risks. In AEs, the increase in downside risks is more prominent.