A common factor behind these low rates, and perhaps in part behind the shared increase in house prices as well, is the "global saving glut" identified by Chairman Bernanke – the large amounts of savings, both official and private, from Asian and oil-exporting nations that tended to lower neutral interest rates globally.
If a central bank’s efforts to fight inflation are credible, wage moderation will also ensue. This, in turn, will have a stabilising impact on economic activity.