BIS GM cites recent financial volatility as reason to remain vigilant against threats to financial stability

While acknowledging the overall calm of the financial markets, Knight said: “In the past few weeks, volatility in financial markets has risen across the globe. A sustained but moderate increase in real long-term interest rates – which are in many ways central to the pricing of assets, both real and financial – seems to have finally occurred. Equity price indexes in some markets have fallen by more than 20% from their peaks earlier in the year. Trading in certain instruments has been heavy, a