Homepage / Currency / BIS warns of geopolitical events and four other risks that could undermine global upswing
Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “ger├žek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software? The Power of Business Software The Benefits of a Software Board Online Data Room Review The Importance of Tech Knowledge Improving Accuracy of Financial Data Online Business Records – How to Keep Your Online Business Records Accurate and Secure What is a Board Portal De? DealRoom Review – A Review of VDR Software M&A Due Diligence for Private Companies The Virtual Data Room Review

Currency, United States Finance

BIS warns of geopolitical events and four other risks that could undermine global upswing

A shift in attention to geopolitical events this year could undermine the sustainability of the global upswing, warned Basel-based Bank of International Standards.

The organization commonly known as the central bank of central banks said financial markets were confronted by a changing political environment as the economic background brightened.

“Political events surprised market participants, who quickly needed to take views on the shifting policy direction and its economic implications. Attention shifted away from monetary policy, and political events took center stage,” the BIS said in its annual report published Sunday.

The report warns of four major risks – geopolitical ones aside – that could threaten the sustainability of the expansion in the medium term.

“First, a significant rise in inflation could choke the expansion by forcing central banks to tighten policy more than expected. This typical postwar scenario moved into focus last year, even in the absence of any evidence of a resurgence of inflation,” the report warned.

Other risks include financial stress as financial cycles mature, weaker consumption and investment, mainly under the weight of debt and a rise in protectionism.

“A withdrawal into trade protectionism could spark financial strains and make higher inflation more likely. And the emergence of systemic financial strains yet again, or simply much slower growth, could heighten the protectionist threat beyond critical levels,” the report warned.

Leading Central banks took no time in pumping money into the economy following the global financial crisis of 2008 and the sovereign debt crisis in the euro zone. A number of institutions such as the European Central Bank and the U.S. Federal Reserve introduced bond-buying programs and cut benchmark rates in an effort to stimulate lending. A number of banks pushed interest rates into negative territory effectively charging banks who park cash at a central bank.

Interest rates across European central banks continue to remain at very low levels and in some cases below zero as economies scramble to push growth and inflation levels up. The BIS report, however, suggests that while inflation rates for the most part became better aligned with central bank price stability mandates, the significant reduction in labor market slack raised questions about upside inflation risks.

“An evaluation of those risks based on historical labor market developments suggests that they are unlikely to be the primary risk to the global expansion under way. Policy normalization presents unprecedented challenges, given the current high debt levels and unusual uncertainty,” the report said.

The report outlines that while the financial sector has improved, the environment is still challenging. The near-term outlook, however, has brightened substantially but the attention on U.S. dollar will remain a likely pressure point during episodes of market stress.

“Banks’ continued heavy reliance on short-term U.S. dollar funding, paired with a high degree of market concentration and interconnectedness, underscores the importance of supervisory cooperation and effective backstops. The ultimate aim is a stronger financial system that helps support the resilience of the global economy,” the report said.

On global economy, the BIS remains upbeat and says the economy has strengthened further, growth has approached long-term averages, unemployment rates have fallen towards pre-crisis levels and inflation rates have edged closer to central bank objectives.

Follow CNBC International on Twitter and Facebook.

Source: cnbc
BIS warns of geopolitical events and four other risks that could undermine global upswing

Comments are closed.