(BIS) has warned that low interest rates across the globe are a threat to world financial stability

Interest rates must rise worldwide, says BIS

The Bank for International Settlements (BIS) has warned that low interest rates across the globe are a threat to world financial stability.
BBC 27 June 2011

The BIS warned low cost of borrowing had resulted in a credit and property price boom that was fuelling inflation, especially in emerging economies.

Central banks across the globe have cut interest rates in an attempt to boost growth after the 2008 financial crisis. However, BIS warned that the policy may prove to be counterproductive.

"The prolonged period of very low interest rates entails the risk of creating serious financial distortions, misallocations of resources and delay in the necessary deleveraging in those advanced countries most affected by the crisis," the bank said in its annual report.

Read more at BBC 

Jag tycker det är skriande uppenbart att räntan världen över är för låg och att en större del av stimulanserna borde ske via finanspolitiken

2010-10-19

Rolf Englund blog 

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