The increase comes even as the European economy slows
Settlement balances helped finance pandemic quantitative easing
Central banks must contend with hot labour market but avoid overtightening
The Bank of England and Swiss National Bank also dialed back their increases
The aggressive move comes even as the Bank of England predicted a two-year economic contraction
Monetary and fiscal policy struggle with the pandemic's fallout
Inflation in the U.K. is expected to surge to 13% in the fourth quarter
Inflation-targeting policies have been successful until recently
Many central bank digital currencies are likely to be issued in the "medium" term, BIS reports
More rate increases could be in the pipeline based on the latest economic outlook