Flood of cheap money ‘risks creating bubbles’

A flood of cheap money risks creating bubbles in financial markets if interest rates remain low for long , ECB governing council member Erkki Liikanen has said.

“We need to pay attention,” Liikanen, also governor of Finland’s central bank, said in an interview to be published in leading German business newspaper Handelsblatt today.

“If interest rates remain very low for a long time, there is a risk,” he said.