Haldane blames ‘dread risk’ for ultra-low rates
Fear of catastrophic events may be holding rates down
"Dread risk" could be a major reason behind the unprecedented lows in interest rates in recent years, Bank of England chief economist Andrew Haldane said today (June 30).
Forces "gluing official interest rates to the floor" have proved remarkably resilient since the 2008 crisis, Haldane said in a speech at the Open University. He suggested psychological "scarring" from the crisis had generated an "exaggerated sense of fear and insecurity" that could be leading people to make sub-optimal
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