From Yahoo Finance: 2025-05-26 20:28:00

Governments worldwide are warned by the Bank for International Settlements to rein in their growing public debt to avoid financial instability. The era of low interest rates is ending, making current fiscal paths unsustainable. Recent increases in bond yields in the US, Japan, and Europe signal market concerns about rising debt levels. Failure to address this issue could lead to inflation, exchange rate fluctuations, and fiscal dominance over monetary policy. Countries must establish transparent fiscal frameworks to ensure solvency and reduce the burden on central banks. Central banks should not be solely responsible for stabilizing inflation.



Read more at Yahoo Finance: BIS urges governments to curb ‘relentless’ rise in debt