Soaring government debt could roil global financial markets, warns BIS head

Agustin Carstens says world economy on course for smooth landing' after inflation but political turmoil poses risk

Rising government debt levels could disturb global financial markets, the head of the body that advises central banks said on Sunday before France's high-stakes parliamentary elections.

Agustin Carstens, the general manager of the Bank for International Settlements (BIS), said the world economy was on course for a smooth landing" from the inflation crisis, but he warned that policymakers, especially politicians, needed to be careful.