BIS – Low rates will result in civil unrest as central banks lose control
By Duncan Richardson, News Editor
19 Mar 2015
The Bank of International Settlements has warned if inflation, bond yields and interest rates remain low political stability could be pushed to breaking point.
The bank which is often referred to as the “bank of central banks” said if rates continue to fall it will push countries’ economies into uncharted territory. The BIS warned politicians could face a backlash from ordinary people who have seen the value of their pensions and savings eroded.
The bank confirmed 20 central banks have lowered rates in the last three months and if this trend continues countries run the risk of pushing technical, legal and political boundaries to their limit.