New Delhi: According to N Chandrasekaran, chairman of Tata Group and Tata Motors, rising interest rates have revealed underlying pressures in sectors of the banking industry, which could damage global economy next year.
When addressing shareholders of Tata Motors in 2022-23, he said, "the current year witnessed a surge in inflation requiring coordinated action by most central banks to increase interest rates to control inflationary expectations." While inflation is beginning to moderate, Chandrasekaran continued, "the rise in interest rates has also revealed hidden stresses in parts of the banking sector that enjoyed a long run of low-interest rates and thus were not prepared for the rate rise." The world economy may be affected next year as a result of this. He recalled his warning from the previous year, saying, "recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages, and more." He went on to say that the structural upheavals in economies and societies that have resulted from these issues are far from over.
According to Chandrasekaran, the shift towards green mobility is "irreversible" in the energy transition, and the process of restructuring supply chains to make them resilient is already underway.—Inputs from Agencies