BoE's Bailey warns governments lack fiscal space to counter new crises

Bank of England Governor Andrew Bailey cautioned that weak growth and recent shocks have left governments with limited fiscal room to respond to future economic downturns. His remarks come amid rising bond yields, pressured by energy costs and fiscal concerns in France, underscoring market sensitivity to sovereign debt sustainability. The warning signals potential constraints on countercyclical policy in major economies, with implications for growth and rate expectations.