World Business NewsA round up of the latest news for those doing business internationally
BIS: Central banks warned of ‘false sense of security’
Zone(s): Global ¦ Sector(s): Economy, Interest Rates
[29 June 2014, BBC News] The Bank for International Settlements (BIS) has warned that ultra-low interest rates have lulled governments and markets “into a false sense of security”. The Basel-based organisation – usually dubbed the “central banks’ central bank” – urged policy makers to begin to normalise rates. “The risk of normalising too late and too gradually should not be underestimated,” the BIS said.
Markets have rallied since January. The FTSE all-world share index is up 5% so far this year, while the Vix, a measure of implied US market volatility known as the “fear index”, is at a seven-year low.