Worries over financial stability mount as central banks tighten policy

Under pressure: People walk outside of the BoE in London. Though the bank stepped in to stabilise markets, a number of closely-watched indicators such as global demand for dollars and risk aversion in credit markets still show increasing financial stress. — Reuters

NEW YORK: Signs of stress are growing in the global financial system, sparking worries over everything from contagion between markets to ruptures in financial products.

The concerns come as central banks around the world furiously tighten monetary policy in their fight to tame inflation, creating an environment investors and policymakers say is fertile ground for episodes of financial instability.