4,973.87 TL BIST 100 BIST 100
18.64 $ USD USD
€19.57 EUR EUR
10.83 TL Interest Interest
79.57 $ Fossil Oil Fossil Oil
3.80 $ Copper Copper
22.34 $ Silver Silver
108.64 $ Iron Ore Iron Ore
373.00 $ Ship Dismantling Ship Dismantling
1,061.54 TL Gold (gr) Gold (gr)

UN calls on central banks to stop interest rate hikes

The report of the United Nations Conference on Trade and Development (UNCTAD) stated that any thought of bringing prices down with higher interest rates without creating a recession is a "careless gamble".

UN calls on central banks to stop interest rate hikes

The United Nations Conference on Trade and Development (UNCTAD) reported that central banks in developed countries such as the US Federal Reserve (Fed) and the European Central Bank (ECB) continue to raise interest rates, risking pushing the global economy into recession and then into a prolonged recession.

In the 2022 Trade and Development Report announced by UNCTAD, this year's global growth figures were evaluated and predictions for the future were shared.

In the report, it was stated that rapid interest rate hikes and financial tightening in advanced economies, combined with the successive crises caused by the Kovid-19 epidemic and the war in Ukraine, have already turned the slowdown in the global economy into a recession, and the desired "soft landing" in the economy seems unlikely.

Pointing out that monetary and fiscal policy moves in advanced economies carry the risk of pushing the world into a global recession and prolonged recession, the report stated that there is a risk of worse damage than the financial crisis in 2008 and the Kovid-19 shock in 2020.

"A reckless gamble"

In the report, it was reminded that in 10 years of extremely low interest rates, central banks have consistently fallen behind their inflation targets and failed to provide healthier economic growth.

UNCTAD's report stated that any thought of bringing prices down with higher interest rates without creating a recession is a "careless gamble".

In the report, which draws attention to the fact that excessive monetary tightening may start a period of recession and economic instability in many developing countries and some developed countries in a period when real wages are falling, fiscal tightening, financial turmoil and multilateral support and coordination are insufficient, the report states that this year's interest rate hikes in the USA are among the developing countries, excluding China. It was noted that it could cause an estimated 360 billion dollars reduction in revenue for countries with a high income and more problems in the future.

In the report, it was emphasized that the national currencies of 90 developing countries have lost more than 10 percent value against the dollar this year due to interest rate hikes.

In the report, which stated that the expectations for global economic growth deteriorated, it was reported that the world economy is expected to grow by 2.5 percent this year. In its report published in March, UNCTAD announced that the global economy is expected to grow by 2.6 percent in 2022.

In the report, it was stated that global economic growth is expected to decrease to 2.2 percent in 2023.

"There is still time to avoid a recession"

Speaking at the press conference at the United Nations (UN) Geneva Office regarding the report, UNCTAD Secretary General Rebeca Grynspan said, "Monetary policies and financial practices in developed countries have caused worse damage than the Kovid-19 shock in 2008 and 2020, leading the world to a global recession and a long-term crisis. risks dragging it into recession.” said.

Noting that there is still time to prevent the anticipated global recession, Grynspan called on developed countries to reorganize their financial policies accordingly.


No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

UK goes to energy saving

Wednesday, November 30, 2022

World Trade Organization: Global trade in goods likely to slow

Tuesday, November 29, 2022

Fed signals interest rate hike will slow soon

Thursday, November 24, 2022

The proposal from the EU Commission to impose a ceiling price on natural gas

Wednesday, November 23, 2022

New tax statement from the UK!

Friday, November 18, 2022
Follow List
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.

There are no news categories you follow
Edit Notification Preferences

Global Iron and Steel Exchanges

Iron and Steel Indices, Price and News

E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now