Governments should cut back on borrowing to ease one of the biggest threats to the stability of the global financial system and support efforts to tame inflation, the Bank for International Settlements said Sunday.

In its annual report on the global economy, the central bank for central banks warned that rising debt levels exposed governments to the risk of a crisis similar to that which roiled the U.K. in 2022, when investors suddenly shied away from government bonds, driving borrowing costs up sharply, weakening the currency and sending equity markets into a tailspin.

Source: REUTER