Catch up with Kyle: 28 February 2018

The risks of rising global interest rates

Quantitative easing has distorted markets

The various forms of central bank involvement in the market – including quantitative easing (QE), zero interest rate policy (ZIRP) and negative interest rate policy (NIRP) – have all severely distorted bond markets and the relationship between equities and bonds. As a result, central banks have accrued more than US$16 trillion in assets (as shown in Chart 1).