The GuardianThe Guardian

Stock markets plunge again as flurry of interest rate hikes fuels recession fears

By Martin Farrer

17 Jun 2022 · 4 min read

Editor's Note

Central Banks across Europe and beyond are raising borrowing costs in an effort to reign in the soaring inflation. But investors globally fear the inevitable result will be widespread recession.

The global rout in stock markets, cryptocurrencies and other risky assets has gathered pace amid growing concern that out-of-control inflation, rising interest rates and slowing growth could combine to tip the world into recession.

Share prices fell in Asia on Friday at the beginning of what was likely to be another torrid day for investors spooked by the US Federal Reserve’s decision this week to raise interest rates by the largest margin for almost 30 years.

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