''BoE's Bailey: Rising debt limits UK's crisis response'

 Bank of England Governor Andrew Bailey warned on Thursday that rising borrowing costs and weak growth are eroding governments’ capacity to cushion future economic downturns.

Addressing the audience at the Central Bank of Turkey, the banker explained that higher financing costs and sluggish growth push up debt-to-GDP ratios, while repeated supply shocks increase pressure for fiscal support. He went on to stress that if investors question the credibility of governments' fiscal trajectories, bond yields could rise further, tightening monetary and financial conditions.

Governments have traditionally borrowed to soften severe downturns, then rebuilt fiscal space as conditions improved, but Bailey cautioned that more frequent shocks, weaker underlying growth and higher debt are making that approach increasingly difficult to sustain. He urged policymakers to pursue sustainable growth and maintain credible monetary and fiscal frameworks, adding that financial markets must be able to absorb shocks without amplifying them.

https://breakingthenews.net/Article/BoE's-Bailey:-Rising-debt-limits-UK's-crisis-response/67259980