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Defiant Rates

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World Bank: Global rate hikes could trigger 2023 recession

World Bank: Global rate hikes could trigger 2023 recession
Sep 16,2022 2:20 am

... Central banks have raised Rates " with a degree of synchronicity not seen over the past five decades" to tackle soaring prices, it said...

Tory leadership race: Rivals battle over tax cutting pledges

Tory leadership race: Rivals battle over tax cutting pledges
Jul 10,2022 2:15 pm

... He says that, if elected, he would also freeze business Rates - a tax on commercial property - for the poorest areas for five years...

Zero Covid holds danger for China's Xi

Zero Covid holds danger for China's Xi
Jul 8,2022 3:05 am

... After the initial outbreak in Wuhan, the country has been kept inside a giant Covid protection bubble, shielding the population from the high death Rates experienced elsewhere, but it has come at a cost - and growing political risk...

Top student loan interest rate cut by 5% in England

Top student loan interest rate cut by 5% in England
Jun 11,2022 2:40 am

... Confirmation of student interest Rates is usually made in August, but Ms Donelan said the government had " brought forward this announcement to provide greater clarity and peace of mind for graduates at this time"...

Newport: Can an Instagram-able market save a city centre?

Newport: Can an Instagram-able market save a city centre?
May 7,2022 4:10 am

... " If you can offer cool independent clothing brands, a place that reflects sustainability, with some great food and the ability to work there in a cool and innovative office with affordable Rates...

Turkey's cost of living soars nearly 70%

Turkey's cost of living soars nearly 70%
May 5,2022 9:40 pm

... But Turkey s problems have been made worse by its president s reluctance to raise interest Rates - a commonly used tool to help cool inflation...

Local elections 2022: A simple guide to English council elections

Local elections 2022: A simple guide to English council elections
Apr 8,2022 4:55 am

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The whistleblowing bankers who were sent to jail

The whistleblowing bankers who were sent to jail
Mar 1,2022 3:50 am

...Two traders jailed for rigging interest Rates were the original whistleblowers of the scandal, the BBC has learned...

World Bank: Global rate hikes could trigger 2023 recession

Feb 24,2022 3:39 am

Interest rate hikes by central banks around The World could trigger a global recession in 2023, The World Bank has said.

Central banks have raised Rates " with a degree of synchronicity not seen over The Past five decades" to tackle soaring prices, it said.

Raising Rates makes borrowing more expensive to try to bring down The pace of price rises.

But it also makes loans more costly, which can slow Economic Growth .

The Warning from The World Bank comes ahead of Monetary Policy meetings by The US Federal Reserve and Bank of England, which are expected to increase key interest Rates next week.

On Thursday, The World Bank said The global economy was in its steepest slowdown since 1970.

It said " The World 's three largest economies - The US, China and The Euro Area - have been slowing sharply".

" Under The circumstances, even a moderate hit to The global economy over The Next year could tip it into recession, " it said.

The World Bank also called on central banks to coordinate their actions and " communicate policy decisions clearly" to " reduce The degree of tightening needed".

Inflation, which is The rate at which prices rise, hit a 40-year-high in The US and UK in recent months.

This Was driven by higher demand as pandemic restrictions eased, and as The War in Ukraine boosted energy, fuel and food prices.

In response, Central Bank policymakers have raised interest Rates to cool demand from households and businesses.

However, big rate increases increase The Risk of recession as it can cause an economy to slow.

Central banks do not typically run policy decisions by their counterparts.

They have in The Past , however, coordinated their actions to support The global economy.

In 2007, a global financial crisis was precipitated by a subprime mortgage crisis in The US.

This developed into a full-blown crash after The collapse of The Lehman Brothers investment bank in September 2008.

A month later, The Fed, along with The European Central Bank and central banks in Canada, Sweden and Switzerland, jointly lowered their key interest Rates .

That The " intensification of The financial crisis has augmented The downside risks to growth and thus has diminished further The Upside risks to price stability".

" Some easing of global monetary conditions is therefore warranted, " they added.



Source of news: bbc.com

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