BIS’s Caruana warns of low interest rates risk

Jaime Caruana says low interest rates have created a ‘first-mover disadvantage’ that prevents rates rising and could fuel financial instability

Volatility arrows

The general manager of the Bank for International Settlements (BIS), Jaime Caruana, has called on policy-makers to avoid "financial protectionism", as countries maintain artificially low interest rates.

Caruana said interest rates in advanced and emerging economies had been persistently below real growth rates for at least 10 years. He suggested countries may have reached a stage where rates have become entrenched due to a "first-mover disadvantage", whereby no country wishes to be the first to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

ESRB narrows its macro-prudential tools

The European Systemic Risk Board is about to announce a slimmed-down list of potential macro-prudential tools, but who has the power to use them is still the subject of debate. By Michael Watt

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here