World Bank warns rising rates threaten global recession

The World Bank has issued a warning to central banks, suggesting the current trajectory of interest rate hikes may not be sufficient to avoid a global recession in 2023. A new study from the organisation found that unless supply disruptions and labour-market pressures subside, the expected interest rate increases could leave global core inflation at 5%, almost double the pre-pandemic five-year average. While investors expect central banks to raise rates to almost 4% next year - a figure more than two percentage points higher than 2021's average - the World Bank predicts that rates mig...