Global financial watchdog issues stark warning over further shocks - reports

Recovery is 'losing momentum'

The Financial Stability Board, the global financial watchdog, has warned of “further challenges and shocks” emanating from the impact of higher interest rates on countries’ economies and the property sector.

According to a report by the FT, Klaas Knot, chair of the FSB, told G20 leaders the global economic recovery is "losing momentum", and the effects of the rise in interest rates in major economies are "increasingly being felt". "There will certainly be further challenges and shocks facing the global financial system in the months and years to come," he said. Knot also pointed to the property sector as a potential lurking problem, and one authorities should "closely monitor" for risks. Financial providers to the real estate sector, which is particularly vulnerable to increases to the...