Central banks may reverse rate hikes in 2023 to escape slowdown: SBI

Financial markets in 2022 have remained volatile and edgy with the central banks globally in unison in a rate hike cycle

Central banks across the globe may unwind the key interest rates as inflation starts to cool down and prospects of a slowdown become starker, the State Bank of India (SBI) said in a report, according to IANS.

"With the prospect of a global slowdown, the central banks in different countries may unwind the rates as inflation comes off the boil and slowdown starts to bite," the report said.

Policymakers worldwide are faced with the challenge of controlling inflation without harming the economy and financial markets. The markets in 2022 have remained volatile and edgy with the central banks globally in