Financial Times FT.com

International capital markets: Global markets feel effects of oil money

By Gillian Tett

Published: November 28 2006 11:11 | Last updated: November 28 2006 11:11

As the cost of raising funds in the international capital markets has tumbled over the last year, it has left many economists looking for reasons why interest rates should be so low.

Some have chosen to blame the phenomena on the fact that Asian central banks such as China’s have been enjoying a boom in reserves as a result of their exchange rate policies, and have recycled this money back into US bonds.

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