📝 Major Economies To Avoid Monetary-Policy Driven Recession: Goldman Sachs

Major economies are unlikely to fall into a recession due to monetary-tightening, early interest rate hikes seen in major economies support the view. Looking at countries where key policy rates were adjusted earlier (N.Z., Latin America, Eastern Europe), we did not find signs of recession as labor markets continue to stand resilient. Reopening is still boosting growth, while balance sheets support the drawdown of excess savings and consumer credit growth. Coupled with the persistence in inflation and its drivers, this resilience suggests some upside risk to terminal rates among the later hikers relative to current market pricing. - Goldman Sachs