Global financial stability will be in jeopardy if low inflation lulls central banks into not raising interest rates when needed, the Bank for International Settlements has warned.
The message about the danger of sticking too closely to inflation targets comes as central banks in some of the largest economies consider how to end years of ultra-loose monetary policy.
Weak growth in wages and prices has made some central banks reluctant to remove stimulus measures, despite evidence of a stronger global recovery .
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