Central banks will remain central to managing future financial crises, but soaring public debt, large fiscal deficits, and rapid changes in financial markets could make their interventions harder and more politically controversial, Bank for International Settlements (BIS) chief Pablo Hernández de Cos said, according to a report by Reuters.
Speaking in Vienna, Hernández de Cos, one of the frontrunners to succeed Christine Lagarde as president of the European Central Bank next year, said the crises of the past two decades had highlighted the importance of swift central bank action in containing market turmoil, the report stated.
However, he warned that the environment surrounding the next financial crisis is changing rapidly. Public debt…