Central banks should keep raising rates: BIS's Knight

The BIS also used the meeting to repeat a plea for China to allow its yuan currency to appreciate, which it said would help ease the risk of an unwinding in global imbalances.

But People's Bank of China governor Zhou Xiaochuan said the country would continue its gradual process of making the yuan fully convertible.

(Additional reporting by Natsuko Waki, Simon Rabinovitch and David Milliken)