The Bank for International Settlements (BIS) has issued a warning regarding the potential risks posed by high government debt levels ahead of significant elections in countries including France, Britain, and the US. The BIS cautioned that indebted countries are vulnerable to a precipitous loss of confidence, a risk that is not sufficiently acknowledged in bond markets. The organization also advised central banks to set a 'high bar' for interest rate cuts to avoid triggering a fresh flare-up in inflation. Additionally, BIS highlighted the need for preparedness to raise interest rates if inflationary pressures return. BIS director warned that soaring government debt could roil global financial markets. In its annual report, BIS noted that the global economy looked set for a 'smooth landing' as inflation cooled and growth remained resilient.