BIS's Hannoun calls failure to normalise policy a 'high-risk strategy'
Deputy general manager flags risks from low interest rates
Hervé Hannoun, the Bank for International Settlements' (BIS) deputy general manager, yesterday warned central banks that holding rates at very low levels was likely distorting the real economy and exposing the financial system to instability in the future.
During a speech at a gathering of South-east Asian central bankers, Hannoun highlighted a range of dilemmas for central banks in setting their policy during a period of heavy indebtedness. He warned that unconventional policies were
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