- Germany and Russia have higher inflation rates in the upcoming years.
- Inflation is the biggest poison for the world economy and readiness is the priority.
Christian Sewing, CEO of Deutsche Bank stated in an interview that Inflation is the war that has to be fought now. He thinks that covid was just the start of the huge recession that the world economy has to face in the upcoming years. The chances for Germany and Russia getting stuck in the inflation hurdle are significantly higher and it will be massive than the ones they have faced ever before.
“We need to fight inflation because, at the end of the day, inflation is the biggest poison for the economy.”
The present global condition has made him question his previous belief system, the specific importance he has been paying to models as a whole makes a very little strike. The market elements now require individual attention, and the processing for every element has a unique pattern.
Christian Sewing Insights
He believes the world economy has an immense impact from three or four parties, whose minimalist action can bring about greater impact. The war in Ukraine, covid after effects, and restrictions by the Federal banks combinedly increase the likelihood of a recession in the U.S and Europe.
The likelihood of a recession in Europe and the U.S. is quite high, @DeutscheBank CEO Christian Sewing told CNBC.
“There is no doubt that the probability of a recession in Germany and Europe in 2023 or later is higher than we have seen it in any of the previous years,” he added. pic.twitter.com/PUakpUkqm8
— CNBC International (@CNBCi) June 21, 2022
The Federal Reserve interest rate was raised by 75 counts in the previous week, this is considered to be the biggest hike since 1994 that is in the past 28 years. If this stricten continues, the recession risks will be pulled closer very soon.
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