The Bank of International Settlements warned heavily indebted nations on Sunday of a sudden loss of market confidence, validating the long-standing concern in the crypto market.
"Though financial market pricing points to only a small likelihood of public finance stress at present, confidence could quickly crumble if economic momentum weakens and an urgent need for public spending arises on both structural and cyclical fronts," thepublished Sunday."Government bond markets would be hit first, but the strains could spread more broadly, as they have in the past.
The BIS did not single out any nation in particular but cautioned advanced economies from running fiscal deficits larger than 1% of the gross domestic product this year, down from 1.6% in 2023. The warning could not have been more timely as several nations, including the U.S., go to polls this year, where by governments typically boost spending to garner voter support.a fiscal crisis in the U.S. and other advanced nations.
The BIS added that fiscal consolidation will ultimately lessen the need to keep interest rates elevated. "For fiscal policy, consolidation is an absolute priority. In the near term, this would help relieve pressure on inflation and lessen the need to keep interest rates high, in turn helping to preserve financial stability," the BIS noted.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: cnnbrk - 🏆 393. / 55 Read more »
Source: Utoday_en - 🏆 295. / 63 Read more »
Source: Utoday_en - 🏆 295. / 63 Read more »