Central banks may compound risks by raising interest rates together.

Central banks around the world are raising their key interest rates in the most widespread tightening of monetary policy on record.

The Indian central bank, the Reserve Bank of India, has hiked interest rates by 90 basis points in the last two monetary policies. In May, RBI raised the repo rate by 40 basis points and further increased it to 50 basis points in June 2022 policy.

According to a report published in the Wall Street Journal, some economists fear the banks may go too far if they don’t take into account their collective impact on global demand.

According to the World Bank, the number of rate increases announced by central banks around the world was the highest in July since records began in the early 1970s.

According to media reports, more than 80 central banks are aggressively raising interest rates to pacify inflation.

Reports claim that the reversal in monetary policy will have a tangible impact on the real economy for consumers as well as businesses.

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