Economics
It's Time to Fire Up All Engines to Boost World Growth, BIS Says
- Bank for International Settlements says governments must act
- Ultra-low interest rates mean central-bank room is now limited
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Governments must step in to boost their economies and redress policy imbalances that have forced central banks to use up most of their firepower, according to the Bank for International Settlements.
The Switzerland-based BIS, which promotes cooperation among the world’s monetary officials, used its annual economic report to urge politicians to “ignite all engines” to overcome a global soft patch. They should make structural reforms and strengthen fiscal and macroprudential measures, instead of relying on ever-lower interest rates in a debt-fueled growth model that risks turbulence ahead.