From BBC 26 Jun 2011 -
“The Bank for International Settlements (BIS) has warned that low interest rates across the globe are a threat to world financial stability.
Central banks have cut interest rates in an attempt to boost growth after the 2008 financial crisis.
“The prolonged period of very low interest rates entails the risk of creating serious financial distortions, misallocations of resources and delay in the necessary deleveraging in those advanced countries most affected by the crisis,” the bank said in its annual report.
Interest rate increases are not necessary for the Vancouver RE price bubble to implode, but if they were to occur they would speed the process. – vreaa