If the profitability of new investment is lower than that in the past, firms are unlikely to invest. The second reason is that, as a result of prolonged periods of low growth, business  4  BIS central bankers’ speeches  sentiment has become cautious and there is not enough risk-taking activity in the corporate sector.
As for the third reason, it is far more profitable to invest overseas than at home (Chart 11). The Bank hears from many corporate managers that there are only a few attractive investment opportunities at home. Unless we somehow manage to change this view, it will be difficult to stimulate business investment.