Central banks 'have done all they can to offset financial crisis'

24 June 2013

The Bank for International Settlements (BIS) has said central banks have done all they can do to offset the worse effects of the global financial crisis.

According to the organisation, governments of the world need to do more in order to see "strong and sustainable growth".

It said in its annual report the current "whatever it takes approach" should end.

The US central bank made the decision last week to stop its asset purchase programme, which resulted in market volatility.

Governments should reform labour markets and undertake a "forceful programme" of "repair and reform" to bring back prosperity now that the world is "past the height of the crisis", the BIS said.

"Central banks in advanced economies have been forced to look for ways to increase their degree of accommodation," the report said.

It went on to say central banks cannot solve the structural problems that are "preventing a return to strong and sustainable growth".

By Gary Cooper

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