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Inflation is the ‘biggest poison’ for the global economy as recession risk rises, Deutsche Bank CEO says

The U.S. Federal Reserve, European Central Bank, Swiss National Bank and the Bank of England all moved to varying degrees to rein in inflation last week.
“One thing is clear: if there is a sudden stop of Russian gas, the likelihood of a recession coming sooner is obviously far higher. There is no doubt,” Sewing told CNBC’s Annette Weisbach exclusively on Monday.

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Europe and the U.S. face a high likelihood of recession as central banks are forced to aggressively tighten monetary policy to combat inflation, according to Deutsche Bank CEO Christian Sewing.

The U.S. Federal Reserve, European Central Bank, Swiss National Bank and the Bank of England all moved to rein in inflation last week, albeit to varying degrees.

Consumer price inflation in the euro zone hit a fresh record high of 8.1% in May and the ECB has confirmed its intention to begin hiking interest rates at its July meeting.

Central bank leaders and economists around the world have acknowledged that the aggressive tightening that may be necessary to rein in inflation could risk tipping economies into recession, with growth already slowing due to a confluence of global factors.

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