Global Recession Risks Rise as Central Banks Raise Rates
- Fed, ECB, BOE all set to raise rates further next year
- Inflation demands action, but risks to economy are rising too
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Major central banks this week signaled their willingness to countenance a global recession in 2023 as they promised to raise borrowing costs further in their ongoing battle against sky-high inflation.
After each increased rates by a half percentage point, the heads of the Federal Reserve, the European Central Bank and the Bank of England all said more increases are likely next year even as they acknowledged that their economies were weakening.