FSB chair says world faces ‘pivotal’ moment
Tight policy and slowing growth signal financial stability problems ahead, warns Klaas Knot
Financial Stability Board chair Klaas Knot said the world was facing a “pivotal” moment, as the battle against inflation threatens to tip economies into financial instability.
Knot wrote to the Group of 20 today (September 5) ahead of a summit in New Delhi, warning leaders that “persistent” inflation, tighter financial conditions and a “slowing growth outlook” could “create challenges” for banks and non-banks.
Contagion from individual bank failures in March was “limited”, Knot said, but he
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