the eurozone, Denmark, Sweden and Switzerland have taken their interest rates below zero in an attempt to support their economies, contributing to a decline in bond yields.

The so-called central bank of central banks launched a scatching critique of global monetary policy [including The Fed] in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies

“The world will be unable to fight the next global financial crash” the annual report says, “as central banks have used up their ammunition trying to tackle the last crises.

These low interest rates have in turn fuelled [credit-driven] economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.

Claudio Borio, head of the organisation’s monetary and economic department, said: “Persistent exceptionally low rates reflect the central banks’ and market participants’ response to the unusually weak post-crisis recovery as they fumble in the dark in search of new certainties.”

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