Synchronised rate hikes can spark recession: RBI governor Shaktikanta Das

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MUMBAI: Reserve Bank of India governor Shaktikanta Das has warned that the coordinated interest rate tightening by advanced economies could lead to a ‘hard landing’ in the form of recession for economies. He, however, said India was differently placed.
The governor’s statement comes at a time when the UK chancellor Jeremy Hunt has acknowledged that the country is in recession. In the US, corporates are on a massive layoff drive as fears of recession loom. The European Central Bank also said that a recession in the 19 countries that use the euro has become more likely.
Das said that since March 2020, the world has been hit by three shocks. The pandemic, the war in Europe and the aggressive tightening of monetary policy across countries. “As inflation in systemically important advanced economies turned out to be persistent rather than transitory, the third shock emanated in the…

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