The World Bank Group has warned Nigeria as well as other developing economies that simultaneous rate hikes in response to increasing inflationary pressure may trigger a global recession and a string of financial crises.
The Washington-based bank says the currently expected trajectory of interest-rate increases and other policy actions might not be sufficient to bring global inflation back down to levels seen before the pandemic.
The report shows that unless supply disruptions and labor-market pressures subsided, those interest-rate increases could leave the global core inflation rate at about 5 percent in 2023—nearly double the five-year average before the pandemic.