Mumbai, June 30 -- The Bank for International Settlements (BIS) has issued a stark warning about the fragility of the global economy, highlighting the potential for widespread financial stress. The BIS General Manager Agustin Carstens stated that in early 2025, the global economy appeared to be on track for a soft landing. Inflation was either on target or converging to central bank targets. Labour markets had largely normalised. The global economy was expanding at a respectable pace. And the mood in financial markets was growing more upbeat. To be sure, challenges were on the horizon for policymakers. But it seemed, for a moment, that the worst was behind us.

However, the outlook has since darkened. The announcement of broad-based US ta...