4 The volume of quantitative easing by central banks is expected to reach record levels in 2016. Around $ trillion of bonds carry a negative yield; and  •  high asset valuations are presenting risks to financial stability in many economies and the level of household debt remains high (and has been rising rapidly in several large emerging market countries).
The conduct of monetary policy has become more complicated as global financial integration has continued to increase, and as the financial policy spillovers arising from the extraordinary monetary policy measures of the major central banks have increasingly been felt in the smaller and peripheral markets. 5, 6 Many of these issues are likely to be long lasting.