Warning low interest rates threaten global economy

It said the low cost of borrowing had resulted in a credit and property price boom that was fuelling inflation, especially in emerging economies, the BBC reports. Central banks across the globe have cut interest rates in an attempt to boost growth after the 2008 financial crisis. However, the BIS warned this policy may 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...