September 22, 2017

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Muted inflation a trillion-dollar puzzle, says BIS

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The conundrum of stubbornly low inflation despite a pick-up in global growth and continued monetary stimulus is a “trillion dollar” question, the umbrella body for the world’s leading central banks said on Sunday. The Bank for International Settlements (BIS) said in its latest quarterly report that cheap borrowing rates and the rare simultaneous expansion of advanced and developing economies are driving financial markets higher, with signs of “exuberance” starting to re-emerge. The BIS said this raises a question over the potential for another crisis if there is a significant rise in interest rates.

Source:: https://finance.yahoo.com/news/muted-inflation-trillion-dollar-puzzle-161452927.html

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