Bank for International Settlements: Market confidence may collapse rapidly

ChainCatcher news, according to CoinDesk, the Bank for International Settlements (BIS) stated in its annual report released on Sunday: "Although current pricing in financial markets suggests that the likelihood of public finance pressure is low, confidence could quickly collapse if economic momentum weakens and there is an urgent need for public spending in both structural and cyclical terms. The government bond market will be the first to be impacted, but the pressure may spread more widely, as it has in the past."

The BIS did not specifically point out any countries but warned that fiscal deficits in developed economies should not exceed 1% of Gross Domestic Product (GDP) this year, down from 1.6% in 2023.