The body responsible for overseeing the world's central banks has warned that investors are ignoring signs of overheating in financial markets and consumer debt levels rising to unsustainable levels.
The Bank for International Settlements (BIS) likened current market conditions to the pre-2008 crash era when investors, chasing high returns, leveraged up in order to invest in risky assets, despite moves by central banks to restrict access to credit. The Guardian reported the BIS's quarterly health check said moves by the US Federal Reserve and the Bank of England to limit risks by raising interest rates had failed so far and unstable financial bubbles continue to grow. Head of the BIS Claudio Borio further commented central banks could help investors begin to recognise the need to ...
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