BIS advises central banks to preserve interest rate buffers to maintain financial stability.

The Bank for International Settlements (BIS) advises central banks to preserve their interest rate buffers, cautioning against rapid cuts that could undermine financial stability. Claudio Borio, head of the BIS's Monetary and Economic Department, emphasized the importance of maintaining safety margins for future economic downturns and crises. The BIS report also addresses risks from the yen carry trade and the interconnectedness of life insurers with private equity reinsurance.