INTEREST rates have been "extraordinarily low for exceptionally long", and this points to the global economy's struggle to shake off its post-crisis malaise. As such, more attention should be paid to the risks of normalising loose monetary policies too slowly, the Bank of International Settlements (BIS) warns in its annual economic review. All this even as debate continues over when the US Federal Reserve should hike rates.

Persistently low interest rates also means that risks are migrating from banks to other parts of the financial system - insurance companies, pension funds and an expanding asset management industry. These risks should be monitored and managed closely, the BIS said in its hefty 250-page report released on Sunday.

Though global growth has picked up over the past year - thanks to the US dollar's appreciation and a sharp drop in oil prices - little has changed fundamentally, said BIS, which is sometimes described as the central bank to central banks.