Central banks 'risk global recession unless they relax 2% inflation targets'

Central banks risk tipping a stalling global economy into a full-blown recession unless they relax their 2% inflation targets and adopt a more pro-growth stance, the economic arm of the UN has warned. Pointing to evidence of a looming debt crisis in poor countries, the UN said the sharp rises in interest rates from the major central banks since 2021 had increased inequality and reduced investment but proved a blunt anti-inflation weapon. The annual report from the Geneva-based UN Committee on Trade and Development (Unctad) said global growth was set to slow from 3% in 2022 to 2.4% in 2023,…