Winning Bizness Desk
Mumbai. Inflation has reached a 4-decade high in many countries of the world and many countries have started taking different steps to deal with it. In the USA, the Federal Reserve is engaged in aggressively increasing interest rates to control heavy inflation. The USA's central bank Federal Reserve and Bank of England have increased interest rates by 75 basis points, sending shockwaves among citizens. Let us tell you that both the banks have different logic about increasing the lending rates to control inflation. The Federal Reserve says that interest rates may go higher than previously estimated, while officials in England have said that interest rates in the UK are going to be lower than the financial market estimates.
Economic recession begins in Britain
The UK economy is going through a strange phase and according to experts, the economic slowdown has started there. America's economy is currently facing a recession and the good job figures in October are testimony to this. According to the estimates of the Federal Reserve, there are no signs of recession in America. Central banks in Australia and Norway are trying to control inflation by raising interest rates marginally. Czech Republic has refused to increase interest rates.
Job market conditions look good
Let us tell you that the situation of the job market is looking better in many countries of the world at this time. The Bank of England has made the biggest increase in interest rates in the last 33 years, but it has denied the possibility of raising interest rates in the future and said that it could put the economy into recession for two years. At present, the Monetary Policy Committee has raised interest rates by 75 basis points to the level of 3 percent.
Huge impact on business
In Europe too, inflation has reached an all-time high creating a threat of economic slowdown. European countries believe that it is almost impossible to avoid economic recession. Due to the rising cost of energy, business is being affected, ultimately affecting the livelihood of the people. In winter, the energy crisis in Europe can take a serious form. Manufacturing and service activity weakened in China in October which indicates that the situation may get worse in the coming days. Due to the government's attempt to control the corona in China, many activities are being affected.