The Bank for International Settlements (BIS) says banks have done their bit to help economic recovery and now governments must do more.
The Basel-based organisation – usually dubbed the “central banks’ central bank” – believes it is time to end the “whatever it takes” approach.
It says it wants to see a return to “strong and sustainable growth”.
Last week the US central bank said it planned to stop its asset purchase programme, sparking market volatility.
In its annual report, the BIS said the world’s central banks had done what they could to offset the worst effects of the six-year long global credit crisis.
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Although six years have passed since the eruption of the global financial crisis, robust, self-sustaining growth still eludes the global economy”
As the credit crunch hit, central banks tried a number of tactics to try to keep the money flowing, initially cutting interest rates and later adding in quantitative easing, buying in assets and releasing vast sums into the banking system.
But now that the world was “past the height of the crisis”, it was time for such interventionist policies to change.
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