While financial markets have regained some composure since the start of the year, mounting global debt levels, sticky growth and the prospect of long-term negative rates are issues that are not going away anytime soon, the Bank for International Settlements has warned.
Concerns about growth in China and other emerging market economies and the health of some of the world’s largest banks made for a very difficult start to 2016 for most investors, resulting in one of the worst stock market sell-offs since the financial crisis of 2008.
“Underlying some of the turbulence was market participants’ growing concern over the dwindling options for policy support in the face of the weakening growth outlook,” the Basel based group, which serves as a representative for central banks around the world said in its quarterly review, published Sunday.
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