BIS Head Urges Targeted Spending to Curb Inflation Risks
Bank for International Settlements head Pablo Hernandez de Cos warned that broad fiscal stimulus could force central banks to raise interest rates. He noted that persistent Middle East tensions and high public debt levels pose significant risks to global financial stability.
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Pablo Hernandez de Cos, general manager of the Bank for International Settlements, urged nations to limit fiscal spending to targeted measures to prevent inflation-driven rate hikes. Global public debt has risen over the last 15 years and is increasingly held by highly leveraged hedge funds. Persistent stimulus risks forcing central banks to cool economic growth if energy shocks or supply disruptions destabilize inflation expectations.
