Monetary policy tightening will dampen global growth: Central banks are reversing their accommodative policies in response to continued cost pressures in global supply chains, heightened after Russia’s military actions in Ukraine destabilized energy, food and key commodity markets, a rating agency report said. S&P.
“As economic growth slows and financing conditions tighten, we see a risk that higher interest rates, persistent inflation and consumer caution will push the US and possibly Europe into recession, most likely in 2023,” the quoted source said.
The main risks are inflation, energy security and geopolitical uncertainty, the rating agency notes.
“Sustained supply-side price pressures in the food and energy markets could trigger general inflation, and the further consequences of the Russian-Ukrainian conflict could undermine global trade and economic growth. Other notable risks are related to governments prioritizing energy security and affordability over short-term stability,” S&P said.
Source: Hot News RO
Anna White is a journalist at 247 News Reel, where she writes on world news and current events. She is known for her insightful analysis and compelling storytelling. Anna’s articles have been widely read and shared, earning her a reputation as a talented and respected journalist. She delivers in-depth and accurate understanding of the world’s most pressing issues.