UK at particular risk due to high government borrowing following pandemic and Ukraine war
Financial markets could fall sharply if stubbornly high inflation forces central banks into further aggressive increases in interest rates, a leading international body has warned.
The Paris-based Organisation for Economic Co-operation and Development said ever-higher borrowing costs could put the global financial system under severe stress and send share and bond prices tumbling, as it expressed concern in its half-yearly update that the full impact of tougher policy was yet to felt.
