Baku. 23 September. REPORT.AZ/ Additional funds transmitted by world's central banks to financial markets and may cause excessive swelling of financial assets and lead to a crisis over time.
Report informs citing the Russian media, as part of long-term loans to financial markets, European Central Bank has allocated 46,2 bln euros to banks at the rate of 0%.
The US Federal Reserve System (FRS) kept interest rates unchanged at the level of 0,25-0,5%, which led to a flow of funds to risky assets again.As a result, interest in financial instruments of all countries, including the US and European countries increased. At present, having regard to the policies of central banks investors currently agree to invest in any risky asset.But should also be taken into account that the world economy has entered a stage of growth slowdown. Despite the decline in corporate profits, stock exchanges are very close to the maximum limit of history.
Analytical group of Report believes after expiration of the limit of monetary expansion as part of the economic stimulus program of central banks interest rates will start to increase and world may face global crisis.
Notably, there is a negative interest rate in Europe, Japan and some other countries.It also leads to the banking and insurance system to operate at a loss.That is negative interest rates can't remain for a long time.In other words, assets on the stock markets, real estate and gold prices will decline sharply in the near future.