Central Banks Seeing Limits of Powers to Revive Growth, BIS Says

Central banks can’t expand loose monetary policy without exacerbating risks to world economies, the Bank for International Settlements said.

“Central banks cannot do ‘whatever it takes’ to return still-sluggish economies to strong and sustainable growth,” Stephen Cecchetti, economic adviser and head of the monetary and economic department at the BIS in Basel, Switzerland, told reporters on a conference call. “Central banks cannot do more without compounding the risks they have already created.”