Global Financial Fragilities Mount Despite Rate Cuts and Buoyant Markets

October 22, 2024-- Increased investor risk-taking could fuel vulnerabilities
When it comes to financial stability, the world is facing a split screen of short-term and medium-term factors. The good news is that near-term financial stability risks remain contained.
Why? Because the likelihood of a soft landing for the global economy has significantly increased.

As inflation continues to decline, major central banks have started cutting interest rates. This is boosting already buoyant asset prices and keeping financial market volatility subdued.

At the same time, our latest Global Financial Stability Report calls on policymakers to remain vigilant about the medium-term prospects. We want to highlight two areas of concern.

Goods trade growth set to moderate as barometer index dips

November 28, 2025-Goods trade growth appears to have slowed in the second half of 2025 following a surge in the first half driven by frontloading of imports ahead of expected tariff hikes and by rising demand for AI-related products, according to the latest WTO Goods Trade Barometer.