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Caruana's caution follows a similar warning from the Institute of International Finance, a global association of banks, investment funds and other financial institutions. The IIF this week warned that low rates could mean a "boom-bust cycle" once the central banks withdraw their stimulus. Central banks in the richer countries -- such as the U.S. Federal Reserve, the Bank of England and the Bank of Japan
-- have lowered interest rates to record lows and pushed newly created money into the financial system by purchasing financial assets. Caruana avoided mentioning any individual country's policies but said central banks had done the right thing by making a strong effort to support the economy at a time of crisis.
[Associated Press; By DAVID McHUGH]
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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