BIS warns of rising government debt levels before elections, potential market turmoil

From Investing.com: 2024-07-01 03:20:45

The Bank for International Settlements warns of rising government debt levels ahead of major elections, potentially causing turmoil in global financial markets. With global government debt at record highs, factors like aging populations, climate change, and protectionism could unsettle markets, says BIS General Manager Agustin Carstens. While central banks have successfully tackled high inflation post-COVID and Russia’s invasion of Ukraine, efforts must continue. Key factors to watch include goods and services prices and real wages, to prevent inflation spikes. Premature rate cuts could reignite inflation, warns the BIS. The message is clear: governments must curb public debt to secure a stable economic foundation.



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