Recession threatens the world..? Warning from the ba world
The World Bank has warned that the threat of a global recession is growing as all central banks around the world, including the Federal Reserve of the United States and the Reserve Bank of India, focus on reducing the rise inflation rates around the world. The important problem for the world and for economists is that despite the low price of crude oil over the past 45 days, price inflation is rising rather than falling. In this situation, the World Bank has asked the governments of countries around the world to increase supply to ease the constraints causing price inflation.
Global inflation has risen at the fastest pace in decades at the same time, fueled by excess demand in markets as the world recovers from the coronavirus pandemic, but Russia’s war on Ukraine and the Covid-19 lockdowns in China have hit supply this year, driving up inflation. As a result, the economic growth rate has also been affected. Over the past 3 months, many countries including America, Britain, Europe and India have raised interest rates, but only China has cut production and exports. In this situation, at the end of September, the United States and India will raise interest rates during the central banks’ monetary policy meeting. But in a new report by World Bank economists, they have warned that the steps countries around the world have taken so far to rein in excessive inflation are not enough. Economists say this necessitated further interest rate hikes. A rise in interest rates will increase the interest rate on all loans and not only will people pay more as EMIs, but businesses will also pay more interest, which will affect profit margins and investments for businesses. expansion. Both of these factors will slow the growth of a business, and now you understand why. As stock market investors hastily sell stocks… This is the main reason behind the bloody Mumbai stock market on Friday.