Economic recovery at risk if stimulus not cut back: BIS

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The Bank for International Settlements warned on Monday that economic recovery is at risk of a relapse if government stimulus programmes are not wound down swiftly.

In its annual report, the global central bank body called for "immediate" steps to cut budget deficits and debt accumulation in "several industrial countries", which were not named.

"The combination of remaining vulnerabilities in the financial system and the side effects of ongoing intensive care threaten to send the patient into relapse and to undermine reform efforts," the report underlined.

"Macroeconomic support has its limits," it added.

© 2010 AFP

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