As a consequence of high desired saving and low prospective returns to domestic investment, the mature industrial economies outside of the United States, as a group, seek to lend abroad.
6  BIS Review 5/2008  misinterpreted as a quasi-promise or commitment and could lead to a disorderly adjustment of interest-rate expectations. •  Fourth, another problem is the potential effect on the central bank’s credibility if its communication of future policy rates often deviates from the subsequent actual path of interest rates.