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.

New WFE Research quantifies the impact of stock exchanges on economic growth

January 6, 2025--The World Federation of Exchanges, the global industry association for exchanges and CCPs (The WFE), has published new research which analyses the link between stock market development and economic growth on a global scale.
The research analysed quarterly data from 36 countries over two decades (2003-2022).

5 transformational trends shaping global finance

January 6, 2025--The global economy has undergone seismic changes since the pandemic.
Major structural shifts are underway, shaped by five fundamental forces:
Deglobalization, decarbonization, debt, digitalization, and demographics.
The global economy is very different now compared with even just a few years ago.