While addressing the issue of inflationary pressure on the global economy, the Bank for International Settlements (BIS) has marked the low interest rates as a threat to the financial stability across the world.

In its warning note, the Bank has claimed that low cost of borrowing had resulted in a credit and property price hike, indeed played a role to fuel the inflation, particularly in emerging economies. Earlier, soon after the 2008 financial crisis, the Central banks across the globe have reduced the interest rates as an attempt to support the growth, across the globe.

"The prolonged period of very low interest rates entails the risk of creating serious financial distortions, misallocations of resources and delay in the necessary deleveraging in those advanced countries most affected by the crisis”, stated the annual report of Bank for International Settlements.

The emerging economies, particularly in Asian market, are believed to face rising prices for food as well as other essential commodities. In addition to this, surge in property prices had resulted in over development in the real estate market, leaving large numbers of properties unsold.

The bank has stressed that the issue needs an immediate action to be solved and to avoid a crash in the property market.