BISness BIS Media Briefing - Annual Economic Report 2025
Jun 29, 2025
This briefing dives into the evolving landscape of global economics in 2025, highlighting the need for proactive measures amidst rising uncertainties. A focus on record banking income showcases technological advancements that enhance trust. The implications of tariffs on trade and monetary policies are examined, alongside the weakening dollar's effects on financial stability. The crucial role of independent central banks in managing inflation is discussed, along with the economic repercussions of rising defense spending in the Middle East.
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Global Economy's Structural Challenges
- The global economy in 2025 faces immediate and structural challenges driven by trade disruptions and technological shifts.
- Central banks must balance supporting growth and controlling inflation amid elevated uncertainty and evolving economic conditions.
Shift to Sovereign Bonds Dominates
- The global financial system shifted focus from private sector lending to sovereign bonds post-2008 crisis.
- Non-bank financial intermediaries play a larger role, requiring holistic regulation and close global cooperation among central banks.
Importance of Central Bank Independence
- Central banks need autonomy to fulfill mandates that ensure monetary and financial stability.
- Society must support central bank independence since political pressures often conflict with economic stability objectives.