Rise in interest rates revealed hidden stresses in parts of banking sector: Tata Group Chairman
New Delhi, Jun 27 (PTI) The rise in interest rates has revealed hidden stresses in parts of the banking sector and this could impact global growth in the coming year, according to Tata Group and Tata Motors Chairman N Chandrasekaran.
In his address to shareholders of Tata Motors in the annual report for 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." Chandrasekaran further wrote, "While inflation is starting to moderate, 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 hence not prepared for the rate rise. This could impact global growth in the coming year." Recollecting his last year's message, he said, "recent history has been relentless with the global pandemic, military conflict, growing inequality, supply chain shortages and more." These challenges are resulting in structural shifts in economies and societies, he said, adding, these are continuing to play out.
In the energy transition, Chandrasekaran said the move to green mobility is "irreversible" while the transition for rebalancing supply chains to become resilient is on.