Peter Costello Warns Ultra-Low Rates Risk Creating The Next Financial Crisis

Future Fund chairman Peter Costello has warned ultra-low interest rates risk creating the next financial crisis if central banks keep borrowing costs at record lows for longer than necessary.

Reserve Bank governor Philip Lowe has said he expects to keep the cash rate at just 0.1 per cent until 2024, but Mr Costello on Tuesday said he hoped this would not be the case, because it would represent ongoing economic weakness.

Mr Costello, who is the chairman of this masthead’s owner, Nine Entertainment, said the key issue facing central banks and governments was how to remove extreme forms of stimulus that were put in place to shield the economy during an emergency. Read more…..