Debt-fuelled growth could trigger financial crash, governments told

The Bank for International Settlements warns central banks' reliance on near-zero interest rates threatens global economy

The Bank for International Settlements has warned that governments need to abandon debt-fuelled growth and shift to more sustainable expansion plans as a "risky trinity" of low productivity, high debt and lack of central bank firepower stalks the global economy.

In its annual report, the BIS - which is known as the central bank of central banks - said a repeat of the 2008 financial crash was possible unless the growing reliance on near-zero interest rates to keep the global economy afloat was eased by ministers stepping in to shoulder greater responsibility.