Attempts to curb inflation could cause global recession, warns World Bank

The World Bank has warned that efforts to tackle inflation could cause a global recession. Central banks from the US Federal Reserve to the Bank of England are racing to raise interest rates to try to bring surging prices in the economy under control. The annual rate of inflation in the UK is hovering at close to a 40-year high and rate-setters at the Bank of England are widely expected to raise borrowing costs further, to between 2.25% and 2.5%, when they meet next week. But the World Bank said rapid monetary tightening could cause a recession if rates are lifted too far. The Times (£)