- The main reasons behind it were slower global growth, rising borrowing costs, surging prices for energy and commodities, and increased financial market volatility.
- It is believed that the increase in energy and food costs happened due to the invasion of Ukraine.
- Apart from that, it has weakened the purchasing power of households, rising input costs for companies.
- Besides, borrowing costs of many countries govt increased among which many countries' economies still have not fully recovered from the pandemic crisis.
- To tackle it, Central banks start to raise interest rates in response to high inflation.
Question:
Q.1 As per Credit rating agency Moody's Investors Service, the outlook for global credit conditions in 2022 has turned as _________?a. Positive
b. Negative
b. Negative
c. Stable
d. Undetermined
d. Undetermined
