While consecutive interest rate hikes have helped control inflation, a recent report by the World Bank showed that such a series of rate hikes could push the world into a recession in 2023, largely because of the degree of synchronicity not seen over the past five decades.
More than a dozen countries rushed to raise interest rates in the last few months, but World Bank experts now worry that this could mean a looming global recession.recent report by the World Bank
But such synchronized efforts by most central banks could have a domino effect on developing economies. The report uses past global recessions to illustrate the impact of central banks’ policy responses on developing economies. If previous global recessions are a guide, then the World Bank experts say there are two big concerns.