New financial fragilities may emerge which, in turn, may hamper the normalisation of rates. Finally, maintaining interest rates very low for too long may reduce activity in money markets, delay necessary balance sheet  4  BIS central bankers’ speeches  adjustments by firms and households, set disincentives to governments for their efforts to consolidate public finances.
At the same time, in many advanced economies delocalisation depresses the demand for intermediate-skill workers employed in the production of tradable goods. The implications in terms of income polarisation are not always obvious.