Bill Gates Evaluates Interest Rate Increase
Bill Gates, a successful businessman and one of the world’s wealthiest people, believes that rising interest rates will cause the global economy to stagnate.
Co-founder of Microsoft, Bill Gates evaluates the interest rate hike. According to the renowned businessman, the move to raise interest rates to battle high inflation may induce a global economic slowdown.
Other variables that could cause the recession, according to Gates, are the Russia-Ukraine conflict and the worry produced by China’s quarantine.
Emphasizing that the war in Ukraine caused an increase in commodity prices, Gates said, “In addition, public debts are at very high levels and there are already supply chain problems.”
Fed-led Interest Rate Increase
Many countries, especially the USA, started to increase interest rates in order to control high inflation. The US Federal Reserve decided to increase the policy rate by 50 basis points, taking the decision to increase interest rates the most in the last 22 years.
The Gulf countries and Hong Kong chose to continue their tightening policies in the face of the FED’s decision, and increased interest rates by 50 basis points. The Bank of England (BoE) also increased the policy rate by 25 basis points to 1 percent in line with expectations. Latin American country Brazil, on the other hand, increased the Selic rate, which is the policy rate, by 1 point to 12.75 percent, thus increasing the interest rate by 10.75 percentage points in total since last year.