Outlook for global credit conditions in 2022 is Negative: Moody

Current Context: Credit rating agency Moody’s Investors Service reported that the outlook for global credit conditions this year has turned more negative.

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.