Blogs

Why we are having a banking crisis?

Interest rates rose. For years banks booked low fixed-rate loans. They comprise 80% in France, 85% in UK and 90% in US. Banks now face losses on them. Loans at variable rates can charge more but risk a wave of defaults from borrowers.

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Banking Crisis In US and Europe!

Silicon Valley Bank (SVB), which served tech start-ups, shut down after a rapid slide in deposits. Its clients were struggling to raise cash, thanks to a tech downturn, and had to withdraw deposits.

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Is recession a certainty?

A year ago the Federal Reserve launched its first attack against inflation. Subsequent months saw much larger hikes, reaching 4.5%, with inflation falling to 6.4%, down from 11% last summer.

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Is the Fed crushing the western economies?

The Federal Reserve won’t be able to get US inflation down to its 2% target without “crushing the economy,” economist Mohamed El-Erian warned, “You need a higher stable inflation rate of 3% to 4%, not 2%”.

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Interest Rates Update!

The US Fed increased interest rate by 0.25%, bringing the fed rate to between 4.5%. The Fed added that while inflation had eased somewhat, it remained elevated.

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Inflation: Is the end is sight?

The US was the first major economy where inflation took root, as a wave of pandemic relief money from the government set off a boom in activity and spending.

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