Economics

Global Recession Looms Amid Broadest Rate Hikes in Five Decades, World Bank Says

  • Global policy rates seen to climb to almost 4% through 2023
  • Policy makers told to battle inflation by boosting production
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The global economy may face a recession next year caused by an aggressive wave of policy tightening that could yet prove inadequate to temper inflation, the World Bank said in a new report.

Policy makers around the world are rolling back monetary and fiscal support at a degree of synchronization not seen in half a century, according to the study released in Washington on Thursday. That sets off larger-than-envisioned impacts in sapping financial conditions and deepening the global growth slowdown, it said.