Mail Online

MORE LENDERS WILL FAIL

RISING interest rates will cause more banks to fail, according to a leading City investor.

Sonja Laud, chief investment officer at Legal & General, said central banks faced a ‘difficult balancing act’ – taming inflation or derailing the economy.

‘Over 70 years, and every hiking cycle we have seen in that period, we have never seen a hiking cycle that has not led either to a recession or a financial crisis, or both,’ she told the BBC. ‘The question always has been - why should this time be different?

‘If you slam on the brakes, the chances are something will break and it is always the weakest links that are flushed to the surface first.’

CITY & FINANCE

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2023-03-24T07:00:00.0000000Z

2023-03-24T07:00:00.0000000Z

https://mailonline.pressreader.com/article/282703346341707

dmg media (UK)