WASHINGTON ¨C Global central banks, including the Bank of Japan, buying assets and keeping interest rates low to boost growth have had ¡°positive short-term effects for banks¡± even as risks from the policies are increasing, the International Monetary Fund said.
¡°The prolonged period of low interest rates and central bank asset purchases has improved some indicators of bank soundness,¡± the IMF said Thursday in its Global Financial Stability Report. ¡°Central bank intervention mitigated dysfunction in targeted markets, and large-scale purchases of government bonds have in general not harmed market liquidity.¡±
Central banks in the U.S., Europe, Japan and the U.K. attacked the longest and deepest recession since the 1930s with unorthodox accommodation.
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