BIS warns global economy faces risks from trade tensions and geopolitical conflicts, advising careful central bank action.

The Bank for International Settlements (BIS) warns that global trade tensions and geopolitical conflicts are putting the world economy at a "pivotal moment," with risks of resurgent inflation and financial instability. The BIS notes that US-driven trade policies have exposed vulnerabilities, making the economy less resilient to shocks like aging populations and supply chain issues. The report advises central banks to balance growth and inflation risks carefully.