BIS Quarterly Review, September 2006

The Bank for International Settlements published its September 2006 Quarterly Review on Monday 11 September. The report said Asian central banks which have intervened to limit currency strength may be forced to raise interest rates or let their currencies appreciate as inflation pressures grow.

Central banks have been able to keep interest rates low during the large-scale foreign exchange market intervention of recent years, because other structural factors such as increased competition and

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