The Bank for International Settlements has advised central banks to not react to the effects of the Middle East conflict by adjusting interest rates, especially if the energy supply shock proves to be temporary.

“If it’s a supply shock, and certainly if it’s a temporary one, these are the textbook examples where you should look through and not react with monetary policy,” said Hyun Song Shin, head of the BIS’s monetary and economic department, at a press briefing to mark the publication today of