Low interest rates, negative yields on government debt and quantitative easing are part of the biggest financial experiment in world history, and the consequences are yet unknown, says RIT Capital Partners Chairman Lord Rothschild.
According to a Bank of America Merrill Lynch report in June, interest rates in developed countries, in particular America’s 0.5 percent, are now at the lowest level in 5,000 years. In their battle against deflation, countries such as Sweden, Switzerland or Japan have even turned to negative key lending rates.
