Near-zero rates have spurred borrowing and left consumers, businesses and governments at risk, says Basel institutionA new warning has been issued about the growing risk of a “debt trap” if interest rates around the world stay near zero, which has encouraged borrowing by households, businesses and governments.The Bank for International Settlements – known as the central bankers’ bank – highlighted the vulnerability of consumer, business and government finances to interest rate increases in its 174-page quarterly report. Claudio Borio, the head of the monetary and economic department, described this as “a defining question for the global economy”. Continue reading…
Source : theguardian.com
Read more…Growing risk of ‘debt trap’ if interest rates stay low, say central bankers
