Higher interest rates to trigger world economic meltdown as spenders ‘fall into DEBT TRAP’ | Express.co.uk


The world has become so used to ultra-low interest rates and cheap credit that any rise in the cost of money could trigger a financial catastrophe, the Bank for International Settlements (BIS) warned.

Central banks around the world are gearing up to raise interest rates after years of lows to keep the public spending since the global financial crisis.

Claudio Borio, chief economist at BIS, cautioned any rise in interest rates could jeopardise companies and global markets as bond and equity levels were currently over-valued. Current economic conditions could only be explained by the heavy involvement of the central banks, he said.

Source: Higher interest rates to trigger world economic meltdown as spenders ‘fall into DEBT TRAP’ | City & Business | Finance | Express.co.uk

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