BIS chief economist Claudio Borio in today’s Die Welt newspaper and reported by our friends at Livesquawk
From a global perspective, the current monetary policy could contribute to the dangers for financial stability.
Interest rates are globally too low to guarantee price stability and financial stability.Companies are not using the cheap cash to invest. Managers have preferred to use the money to finance takeovers or share repurchase schemes rather than in their own business. That’s a clear signal that something is amiss
A timely word of warning from the Bank for International Settlements, the clearing bank for the CBs, as the debate rages over when “normalization” or at the very least a rate hike might happen in the UK and US, as well as the dangers of over-extending easy money in the Eurozone
