What low interest rates have done for the world – and the likely effects of a rise

With the US Federal Reserve seemingly set on raising interest rates, it’s time to take stock of what low rates have done for the world. And what the prospects are when this era of low interest rates comes to an end.

Since the financial crisis, short-term interest rates have been close to zero in most major economies. The US Federal Reserve has held interests around 0.25% for the last seven years. Meanwhile, the UK’s bank rate remains at 0.5% and in Sweden the central bank has set a negative nominal rate.