Global stock markets sharply fell on Friday as investors continued to be rattled by growing fears of a recession, after more interest rate hikes by central banks to stave off stubbornly high inflation.
With no signs of consumer price increases abating, central banks around the world stepped up their fight against inflation by raising interest rates once again.
They are arguing that dealing with short-term pain as a result of these hikes would be better than the potential long-term damages of not acting now.
The US Federal Reserve announced another decision to raise borrowing costs by 75 basis points (bps), with a warning that more hikes were being planned and rates would only go down in 2024.
Other central banks followed suit, with the Bank of England (BoE) opting for a 50bps increase, while the Swiss National Bank raised its rates by 75bps. The Bank of Japan, however, bucked the trend and kept its rates unchanged.
Read More : https://www.thenationalnews.com/business/markets/2022/09/24/global-stock-markets-tumble-as-recession-fears-continue-to-grow/
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