BlackRock: Excessive rate hikes, central banks will eventually cause recessions

BlackRock strategists believe that central banks will eventually cause a recession with their aggressive rate hikes.

“We find ourselves in a new macro regime in which central banks are provoking recessions, rather than saving economies – reads the note – This is clear, looking at the rate path of the main central banks, oriented towards excessive monetary tightening against the inflation”.

“We believe – continues BlackRock – that central banks will eventually stop, but will not cut rates in the face of the damage caused by sharp rate hikes”.